Home Equity Conversion Mortgage (HECM) – FHA Insured Reverse Mortgage
Fixed Rate HECM
For borrowers who desire the security of a fixed rate mortgage. The Fixed Rate HECM allows borrowers to lock-in the entire amount of the disbursement in a fixed rate. Fixed Rate HECMs are generally less flexible than adjustable rate HECMS and often carry higher interest rates.
Adjustable Rate HECM
Rich features such as credit line growth, post-closing disbursement changes, tenure/term payment options, make the adjustable rate HECM the most popular HECM product historically. These loans have interest rates that are tied to the LIBOR Index and adjust on a monthly basis. Typically borrowers retain more of their equity over time with a well planned draw schedule and conservative use of funds.
Jumbo Reverse Mortgage
Due to current market conditions, we are not currently offering Jumbo Reverse Mortgages. These loans are typically sought by borrowers with homes valued above the FHA lending limit. The only alternative today would be the FHA insured HECM.
Reverse Mortgages can be great mechanisms for liquidating equity in owner-occupied properties for various needs. Home owners age 62 and up are required to obtain counseling from an FHA approved, independent agency to ensure understanding of the program features, alternatives, and implications of this great US Government insured loan product.
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