A Reverse Mortgage is a unique loan that allows you to access a portion of your homes equity. FHA loans are gov’t insured, proprietary loans are Lender-guaranteed.
Non-Recourse – No Payment Required – No Set Term
Two types of Reverse Mortgage loans:
First: FHA “HECM” home equity conversion mortgage.
Second: Proprietary, or Lender backed loans. AKA, “Jumbo Reverse.”
Both types are offered as fixed rate and as ARM’s (adjustable rate.)
FHA HECM: $726,525.
Proprietary: Up to $9,000,000.
Both loans have principal limits (% Available) based on age and interest rate.
Two Examples That Might Interest You
First: FHA Reverse:
Age 70, home value: $690,000 ARM 1.750 Annual LIBOR.
Loan Cost: $23,115 – Line Of Credit: $348,105 – Expected Rate: 4.430%
Second: Home Safe Proprietary:
Age 70, home value: $1,300,000. Fixed Rate
Loan Cost: $4,719 – Cash available: $482,781 – Rate 5.875 fixed
Bonus Example: (Coming soon to Colorado)
Home Safe Select:
Age 70, home value: $1,300,000. Margin 3.750 3Month Libor.
Loan Cost: $12,706 – Line Of Credit: $595,690 – Rate ARM: 6.016 (expected)