Reverse Mortgage Options:

Call 907-561-2278 or 800-481-9999 with specific questions. Ask for Ken Terrill

FHA HECM* MONTHLY:

This is the most popular Reverse Mortgage. It has the lowest interest rate and usually gets the borrower the largest benefit.  Options include a guaranteed monthly payment for life, a Credit line, a lump sum disbursement or a combination of the above options. The interest rate floats Approx. 1.00% above the 1 year Treasury Bill Index  and adjusts monthly, usually 1 to 5 basis points up or down. (A basis point is 1/100th of 1 percent.) This loan is Guranteed  by the federal Government thru FHA/HUD.

FHA HECM ANNUAL:

This is the same as the monthly with the exception of an annual interest rate cap of 1% and a lifetime cap of 5%.It floats 2.60% over the 1 Year Treasury Bill index and the rate adjusts yearly either up or down. A good option if the monthly adjustable is a little to scary for you.  It will have a lower benefit amount than the monthly because it carries a 1.60% higher interest rate. Insured by FHA/HUD.

FNMA HOMEKEEPER:

This is Fannie Maes version of the Reverse Mortgage. It floats 3.40% above the 1 month CD (certificate of deposit) index and adjusts annually with a 2% cap per adjustment. Because of the higher rate benefits will usually be lower than either of the FHA Insured Reverse Mortgages.

CASH ACCOUNT :

This is a  conventional reverse mortgage with much higher loan limits. It will typically be used only when property values exceed $750,000.00. It floats 3.50% above the 6 month L.I.B.O.R. (London Interbank Offering Rate) index.  There is a "Zero Point" option with this product that reduces your closing costs. The trade off is usually not worth it because of a substantially higher interest rate. It is offered for those who may wish to use it, typically a very elderly person who does not expect to live for a large number of years. Frequently this option is chosen when an elderly person needs money for care and does not expect to survive 1-5 years longer.

BENEFIT OPTIONS:

You can tailor benefits any way you want. The following are the most popular but anything is available with the bounds of the amount available.

1. Monthly insome guaranteed for life. (no matter how lonhg that is - even to age 120 & beyond)

2. An unrestricted growing line of Credit. Take what you need whenever you need it.

3. All cash at closing. You draw what is available and that's it.

4. Part Cash, Part Credit Line.

The Credit Line is an interresting option. Think of the credit Line as an Interest earning Bank Account.

The unused portion of the credit line grows. The current growth rate on the Hud Monthly Reverse Mortgage is 6.47% Annuallly, compounded monthly, Both State and Federal tax Free.

For example: If you had a Credit of $100,000.00 available and did not draw anything you would have

$106,470.00 available at the end of 12 months. You can draw the growth and still have the same $100,000.00 available as you did day one. It's like your home equity is earning interest. It's Federally guaranteed and it is all both State and Federal tax Free. How much better does it get than that?

Call: 907-561-2278 or 800-481-9999 for a free quote. If you request a Benefit Analysis a chart will be provided to illustrate the growth in a Credit Line.

*H.E.C.M. stands for "Home Equity Conversion Mortgage". That's the real name for a Reverse Mortgage. No one seemed to be able to figure it out so the term "Reverse Mortgage" came into popular use.