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
* “The borrower must meet all loan obligations, including living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.”
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: $970,800 (2022)
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)