Streamline Article
A streamline reverse mortgage is a really great product that many people don’t know about. A streamline is when you refinance a current reverse mortgage with reduced costs and simplified underwriting. As a failsafe, a streamline is only allowed when it betters the position of the borrower.
One of the greatest parts of doing a streamline is that you don’t have to pay the full upfront FHA insurance premium again. This means you can refinance to a better rate and terms with reduced closing costs over those associated with a normal reverse mortgage.
One reason to do a streamline reverse mortgage is to lower the interest rate and go from an adjustable to a fixed interest rate. For a long time the adjustable rates were pushed as the best option, but with today’s rates that is no longer the case. As we all know the economy is extremely volatile and unpredictable right now. We do not know what will happen with interest rates, and with current rates being so low, streamlining from an adjustable to a fixed rate is extremely beneficial. It allows you to have the comfort of knowing that no matter what the economy does you are safe in your rate and safe in your home.
Another benefit of doing a streamline reverse mortgage is that at you can often get more money in your pocket. Over the past several years new fixed rate programs have come out resulting in many seniors qualifying for larger loan sizes. As with any reverse mortgage, this can be used for anything that you want, whether that be traveling, remodeling, home repairs or simply supplementing your monthly income. Today’s fixed rates are usually much lower than what the adjustable rates will average.
Your senior years can be some of the most wonderful and some of the hardest of your life. A streamline mortgage could help give you the peace of mind to know that you are doing everything you can to keep yourself in the best position possible.
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