What Factors Are Considered For Loan-To-Value Of A Reverse Mortgage?

The answer varies for each individual and personal situation but begins with the age of the borrower more specifically the youngest borrower and the "lesser" of the FHA reverse mortgage loan limit ($625,500 in most areas) or the appraised value and the current interest rate. This starting point can provide an initial idea of what the borrower can qualify for and is referred to by HUD as the Principal Limit Formula which uses a table almost like an insurance mortality table to determine the principal limit.
 
Other factors that may play a role in the reverse loan amount include, whether there will be a payoff of an existing lien and the loan fees that are included within the loan. The loan program the borrower chooses such as the Home Equity Conversion Mortgage ( HECM) Standard or the (HECM) Saver. Each HECM offers different loan limits and fees. The HECM Saver provides lower loan limits but also lower Mortgage Insurance Fees making it an attractive option for those who have lower home values.

Borrowers who have outstanding payments due on their taxes or home owners insurance, judgments or liens against their property will also be required to pay these through the loan, additionally if the home is found to be in need of repairs that are referenced by the FHA appraiser these items will need to be repaired or replaced either in advance or with proceeds from the reverse mortgage and invoiced prior to closing.

Older Reverse Mortgage borrowers find that they qualify to access more of their reverse mortgage equity making the mid-70 age range one of the most optimal times to complete the reverse mortgage

• Affect HECM Home Equity Access
• Age of Borrower(s)
• Value of Home
• HECM Loan Program "Standard" or "Saver"

• Affect HECM Mortgage Net Proceeds
• Mortgage Lien Payoff
• Liens & Judgments
• Repairs- Required by FHA
• Loan Fee's

Article Source: http://EzineArticles.com/7592204

Mortgage Payment Options

Sierra Pacific Mortgage has multiple options available for making your mortgage payments:

Pay by Mail
Complete and detach the payment coupon at the bottom of your monthly statement and mail your payment using the pre-addressed envelope. Don’t forget to write your loan number in the memo section of your check. If you have misplaced or did not receive your statement, please call your Sierra Pacific Loan Servicing representative to obtain the correct mailing address for your payment.

Check by Phone
Sierra Pacific Mortgage does have the ability to accept mortgage payments over the telephone. Please be prepared with your bank account and loan number and contact the Loan Servicing Department during normal business hours at 1-888-560-2280. There is a $10 handling charge for this option.

Other Payment Options
For the Initial servicing period, only the Pay by Mail and Check by Phone options are available. Approximately 60 days after your initial payments, you will be notified of additional payment options as they are made available.

Do I have the option to make additional Principal payments?
Yes, you have the option to make extra principal payments. Clearly detail the amount of the extra principal payment on your payment coupon. Your loan must be current with no outstanding fees before an extra principal payment will be applied. If the additional Principal payment exceeds $5,000, payments must be made by Cashier's Check, Money Order or Certified Funds.



Read more at www.SierraPacificMortgage.com

Women's Council of Realtors Spring Fling Fashion Show

One of my favorite events of the year, this year named Divas and Dudes, is a charity fabulous event put on by the Women's Council of Realtors.  In fact, I love it so much, I am a sponsor of the event.

All proceeds go to Barrett House Foundation.  The mission of Barrett Foundation is to provide housing and supportive services to women and children who are striving to break the cycle of homelessness. Every day, homeless women and children turn to us for help. Most of them are here because of poverty and have sought temporary housing with family, in apartments, in motels, and in their cars. Other causes of homelessness include personal tragedy, trauma, mental illness, and substance abuse. Today’s economy, particularly housing foreclosures, has had large effect on women and their children.

This year we will be at the Albuquerque Marriott Pyramid.  The event will be hosted by Donnie Chase from 100.3 The Peak.  The live auction will be presented by Steve Stucker of KOB-TV.  But of course the Celebrity Models will be the highlight :)

Come join us for this amazing day of fun and philanthropy!

www.2014WCRFashionShow.org

The Move to Sierra Pacific Mortgage

I recently made the move  to Sierra Pacific Mortgage.  Sierra Pacific supports real estate agents with their “Close on Time Culture”, and their ongoing support of the Greater Albuquerque Association of Realtors and the Santa Fe Board of Realtors.  I am very excited to be working with this great company.  So, let's take a look at Sierra Pacific.


The Company

Headquartered in Folsom, California, Sierra Pacific Mortgage Company, Inc., provides quality mortgage lending services throughout the United States. Incorporated in 1986, we are a privately held company and have originated and purchased billions in residential loans. Our high company production levels and sophisticated capital markets access allows us to deliver competitively priced products to brokers, retail originators and consumers.

Sierra Pacific currently operates 12 Regional Fulfillment Centers and is licensed in 47 states. We are a nationwide direct lender for HUD (United States Department of Housing and Urban Development), Fannie Mae, Freddie Mac, and an approved Seller with FHA, VA and USDA. We originate loans through our Retail, Wholesale and Correspondent business channels.

Steering the company's vision and success since inception in 1986, President, Jim Coffrini, has led the company and our growing team of dedicated mortgage professionals into one of the most profitable mortgage banking firms in the industry. Goal-oriented and committed to the future of Sierra Pacific, Mr. Coffrini has built the Company upon the foundation of quality lending practices, unparalleled service, integrity and industry knowledge.

Our Vision

To be the premier lender of choice in the nation.

Our Mission

We are committed to providing the American Dream through exceptional service while treating our customers and team members with unyielding integrity and care.

Our Core Value

We are a dedicated team of professionals. We respect each other. We encourage self-improvement. We strive for excellence. We embody integrity and ethics. We embrace change. We value our customers. We support our local real estate and lending communities.

Accolades

Sierra Pacific is recognized as a Top 10 (2013-Q1) Residential Lender ranked by Wholesale Volume; and a Top 30 (2013-Q1) Residential Lender ranked by Total Number of Loans. Additionally, Sierra Pacific has been recognized by Mortgage Technology Magazine as a "Top 25 Tech-Savvy Lender" for four consecutive years (2010-2013). 


Visit www.SierraPacificMortgage.com for more info