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Types of Reverse Mortgages |
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Types of Reverse Mortgages
The following information is about some of our most commonly used products. Please contact us with any questions regarding these products or to receive detailed quotes for your eligibility.
- HECM- The HECM (Home Equity Conversion Mortgage) is the only Reverse Mortgage insured by the federal government. HECM loans are insured by FHA (Federal Housing Administration), which is a part of the U.S. HUD (Department of Housing and Urban Development). FHA tells HECM lenders how much they can lend you and also limits the loan costs. FHA also guarantees that lenders will meet their obligations.
- FHA-HECM- This plan provides lump sum cash out, line of credit or a monthly income for life or for a fixed term. You can also do a combination of all three.
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- Maximum Lending Limit- ranges depending on where the customer is located. (this adjusts annually)
- Government Insured Program
- Variable T-Bill interest rate plus margin is adjusted monthly or annually.
- Available balance in Line of Credit grows annually.
- Monthly servicing fee is added to the loan balance.
- Counseling is required by an approved HUD counselor.
- FHA–HECM Fixed Rate – This plan will give you the comfort and certainty of knowing the interest rate will never increase over the life of your loan!
- Fixed Rate Reverse Mortgages eliminate the complexity associated with an adjustable loan, making it easier for you to decide if the Fixed Rate Reverse Mortgage is a sound decision.
- The interest accrual for Fixed Rate Reverse Mortgages are known, therefore you will have the comfort of knowing exactly how much money will pass on to your estate.
- The interest rate for the Fixed Rate Reverse Mortgage is comparable to that of a conventional forward mortgage
- Homekeeper (FNMA)- Fannie Mae's proprietary Reverse Mortgage Product is also designed to benefit the homeowner's 62 years of age or older. Product guidelines are below, the homekeeper program does slightly differ from the most popular HECM program.
- Maximum Lending Limit $417,000 (adjusts annually)
- Government Sponsored Enterprise Program.
- Variable CD interest rate plus margin (3.40) is adjusted monthly.
- A monthly servicing fee is added to the loan balance.
- Counseling is required by an approved agency.
- NO MIP charged on Homekeeper Reverse Mortgages
- Line of credit has NO growth rate.
- Prime Advantage Product - A fixed rate jumbo product has finally hit the Reverse Mortgage market. The Prime Advantage, which has both an adjustable rate (based on the Prime Rate) and fixed rate option, will give reverse mortgage borrowers with higher value homes the opportunity to receive more money at a lower cost as well as a fixed rate for the life of their loan. This program is not available in all states.
- Fixed rate option for life of loan
- No closing cost option
- Based on prime rate not LIBOR
- Aggressive payout
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