Loan Program Options
There are various loan program options available to you through Retirement Funding Solutions. Our goal is to provide the very best in price, product, and service so that you can make the right, informed decision about whether a Home Equity Conversion Mortgage meets your retirement needs. While other lenders might charge a monthly servicing fee; we do not charge any servicing fees on any of our HECMs. We offer fixed rate, variable rate and Jumbo reverse mortgages.
The path to closing your HECM and using your home equity as tax-free proceeds is an easy one. The first step will be attend HECM counseling as is required by HUD. For a complete list of counseling agencies, please contact us. Once counseling is completed, the next step would be to fill out an application for your customized HECM program. After that, send us all documents required by the underwriter and you’re all set.
This HECM option provides the security of a fixed interest rate for the life of the loan. It may be a great option when taking a full draw to pay off a large mortgage or for a new home purchase with a HECM for Purchase.
We offer both annually and monthly adjustable rate mortgages (ARMs). Similar to traditional ARM’s, your initial interest rate is comprised of a fixed margin and an index that will adjust on either an annual or monthly basis. All variable loans have a lifetime interest rate cap.
The benefit of a viable rate HECM is that it provides the greatest flexibly on how you elect to take your loan proceeds. Variable HECMs allow you to set up ongoing monthly term or tenure payments and/or set up a growing line of credit.
Unique Benefits of the HECM Line of Credit:
- This federally insured LOC cannot be frozen, cancelled or reduced, even if home values fall.
- All of the un-used credit grows every month, based on the Credit Line Growth Rate.
- The Credit Line Growth Rate is tied to the interest rate. If interest rates rise, the growth rate on the LOC will also increase, offering greater borrowing power
- Since this is a HECM, debt service is optional. Your can defer all principal and interest until the borrower(s) permanently vacate the home**
- If the client chooses to make payments at any time, the available credit increases accordingly (just like a traditional HELOC).
JUMBO Reverse Mortgages
This jumbo new reverse mortgage offers greater lending limits and loan amounts when compared to the traditional HECM loan. This loan is only available with a fixed rate and may be a good fit for higher value homes.