The Boston Globe issued a basic review of reverse mortgages and encouraged seniors considering the program to understand the options and costs before proceeding.
The report, presented by correspondent Elliot Raphaelson, offers a standard overview of the HECM program, including a brief comparison of the Standard and Saver programs. Raphaelson encourages potential borrowers from only considering reverse mortgages from the FHA insured HECM program. In general, the article lacks details to provide a significant review of the features of HECM loans.
In discussing the requirement for mortgage insurance, the article explains the upfront and on-going costs. Raphaelson than adds a comment about the insurance that is difficult to understand. He writes, "This requirement penalizes mortgage holders who take out a loan much lower than the home value." It is not clear what point he is attempting to make regarding the mortgage insurance and he does not provide any further explanation.
The only comparison of the Saver and Standard programs offered is the difference in the upfront insurance costs. There is no mention of the difference in principal limits. However, the article states, "There is a significant advantage to the saver program, especially when there is a high appraised value. That program is preferable except when you cannot borrow enough for your needs." Raphaelson does not explain what he considers to be the Savers' "significant advantage."
