HECM Saver Reverse Mortgage
The HECM Saver is a lower cost alternative to the traditional HECM Reverse Mortgage. The HECM Saver significantly reduces the upfront Mortgage Insurance Premium (MIP) providing for lower upfront costs. The amount of the upfront MIP is .01% compared to the 2% on the standard. For example, a $300,000 home with the HECM saver would have an upfront MIP of $30, while the HECM standard would be $6,000.
While the HECM Saver Reverse mortgage provides for lower upfront closing costs it does offer a reduced amount when compared to the HECM Standard. Therefore, the ideal borrower is one who is more concerned with closing costs versus the amount of money available to them. Our reverse mortgage calculator can help you determine if the saver is the right product for you.
The HECM Saver was made available in 2010 and is growing in popularity.
Be sure to check out the HECM Saver Rates.