|
TYPES OF MORTGAGES & LOANS
|
REVERSE MORTGAGES ~ DETAILS
The Mortgage Place offers distinct equity release products that offer the flexibility to customize a reverse mortgage specific to your financial needs and objectives. Our Reverse Mortgage Specialists will work with you and your advisors to help you assess your individual situation and choose the product that best meets your needs.
FHA - HECM (Home Equity Conversion Mortgage)
This plan provides cash, a line of credit* or monthly income (or any combination) for a fixed term or as long as you live in your home.
Features and Benefits:
- Maximum Lending Limit – varies from $160,176 to $290,319 depending on the geographic area
(adjusts annually)
- Government Insured Program
- Available to homeowners 62 or older
- Variable T-Bill interest rate plus margin is adjusted monthly or annually
- Flexible Income Payment Option *
- Available balance on line of credit grows annually
- Rising debt loan; may not preserve equity
- Loan origination and closing costs may be financed by the loan
- A monthly servicing fee is added to the loan balance
- Counseling by an approved Fannie Mae or HUD counselor is required
- Social Security or Medicare eligibility may not be affected, and generally neither are SSI or Medicaid/MediCal
(Consult The Social Security Administration and your tax advisor)
- No income qualifications
- Use of loan proceeds not restricted *
- Loan proceeds are tax-free
- Generally takes 30 days to complete the loan
* Not all products and options available in all states
HomeKeeper by Fannie Mae
This plan provides cash, a line of credit* or monthly income (or any combination) for as long as you live in your home.
Features and Benefits:- Maximum Lending Limit: $333,700
(adjusts annually)
- Government Sponsored Enterprise Program
- Available to homeowners 62 or older
- Variable CD interest rate plus margin is adjusted monthly
- Flexible Income Payment Option *
- Rising debt loan; may not preserve equity
- Loan origination and closing costs may be financed by the loan
- A monthly service fee is added to the loan balance
- Counseling by an approved Fannie Mae or HUD counselor is required
- Social Security or Medicare eligibility may not be affected, and generally neither are SSI or Medicaid/MediCal
(Consult The Social Security Administration and your tax advisor)
- No income qualifications
- Use of loan proceeds not restricted *
- Loan proceeds are tax-free
- Generally takes 30 days to complete the loan process
* Not all products and options available in all states
Standard Option:
- Origination Fee = scaled percentage of home value to a maximum of 2%
- Open-ended revolving line of credit
- Minimum draw is $500
- Adjustable interest rate**** = 6 month LIBOR (index) + 5% (margin). Rate is reset semiannually
* Not all products and options available in all states; this product not available in Texas; this product not FDIC-insured
** A balloon payment will occur at maturity
*** The six-month introductory rate as of January 6, 2004 was 5.72% (5.72% APR). (Rates are set on a weekly basis. Ask your representative for current interest rate and APR.)
**** The interest rate after the six-month introductory rate as of January 6, 2004 was 6.22% (6.22% APR). (Rates are set on a weekly basis. Ask your representative for current interest rate and APR.)
|
Back to Types of Mortgages & Loans>> |
|
|
|
