Reverse Mortgage Products   1. Home Equity Conversion Mortgage (HECM) 2. Fannie Mae Homekeeper® Reverse Mortgage 3. Financial Freedom Cash Account Advantage Plan 1. Home Equity Conversion Mortgage (HECM) Highly regulated as part of the U.S. Department of Housing and Urban Development, the Home Equity Conversion Mortgage (HECM) provides both financial security and state of mind. The most popular type of reverse mortgage, the HECM is available to those with single family homes, 1-4 unit homes as long as the borrower occupies one of the units, manufactured homes built after 1976, condominiums, PUD's, and town homes. Borrowers have the option of receiving proceeds from the reverse mortgage in several ways including: A lump sum, A line of credit, Fixed monthly payments A combination of the above The extensive offerings of this type of reverse mortgage present the most flexibility. The amount of the HECM for which you may qualify varies depending on factors such as The borrower’s age The value of the home Current interest rates The loan limit also varies depending on the area in which you reside. Rural areas have lower loan limits than do metropolitan areas. With an HECM, the interest rate fluctuates, being adjusted either monthly or annually depending on the plan the homeowner chooses. Regardless of changes in the interest rate, monthly payments (should you choose this option) will never vary. Costs associated with an HECM are very similar to those incurred with a traditional home mortgage. They include an origination, appraisal, credit, flood, pest, title, and escrow fee and an FHA insurance premium. However, the only out of pocket cost will be the appraisal fee, whereas the other costs may be financed as part of the reverse mortgage. We do not make you prepay the appraisal fee as may be the case on a traditional home mortgage. Back To Top   2. Fannie Mae Homekeeper® Reverse Mortgage Fannie Mae, a government backed subsidy, maintains the Fannie Mae HomeKeeper program. This program was created to supplement the unmet needs of seniors. The HomeKeeper program is available to every senior 62 and over throughout the United States who lives in an owner occupied single-family home, condominium, qualified planned unit development, property held in trust, or qualified leasehold. The amount of funds available to the borrower depends on The age and number of borrowers The adjusted value of the home Current interest rates. Unlike the HECM, Fannie Mae has a higher loan limit, with the ceiling currently at $359,650 (2005). These proceeds may be paid out as a fixed monthly payment, line of credit, or as a combination of these. On a Home Keeper mortgage, the interest rate fluctuates monthly based on the index rate published by the Federal Reserve. This rate will never rise more than 12 percentage points above the initial rate. Fees are similar to those of other mortgage methods. The origination fee may not exceed 2 percent of the adjusted value of the home. There is also a monthly servicing fee (about $30-$35), and various closing costs. For the most part, these can be financed as part of the mortgage. Back To Top   3. Financial Freedom Cash Account Advantage® Plan Financial Freedom's proprietary Cash Account Advantage Plan reverse mortgages have been designed especially for senior with substantial home equity or higher-valued homes. No other reverse mortgage lender offers a jumbo loan product comparable to the Cash Account Advantage Plan and its options. Financial Freedom Cash Account Advantage Plan reverse mortgages have virtually no limit on home value or the amount of the loan. As a result, the amount of money available to the homeowner may be substantially greater with a Cash Account Advantage Plan reverse mortgage than with other options.  Cash Account Advantage Plan features a number of options that allow you to maximize the benefits depending on your unique needs, including eliminating upfront fees and closing costs. Currently there are three available options: the Credit Line Option, the Combo Option, and the Cash Out Option. With all Cash Account Advantage Plan reverse mortgage options, the rate is reset semiannually; there is also a lifetime interest rate cap. A servicing fee is automatically financed on the account each month; there is no such fee in Illinois and Maryland. In addition, there is no equity or appreciation sharing and no maturity fee. Available for all Cash Account Options, Equity Choice Feature allows the borrower to limit the loan obligation to a stated percentage of the full market value of the home resulting in the amount of the loan or line of credit being less than the amount for which the borrower otherwise qualifies. Borrowers may choose to protect a minimum of 10% and a maximum of 50% of their home equity. This permits greater flexibility assuring a percentage of equity remaining to benefit the borrower or heirs upon loan maturity.   Back To Top