This rate option will give you access to more cash proceeds over the life of the loan than any other product option available. You will notice that there
is a line of credit available after 12 months which will allow you to receive the most money possible in the first 12 months. If your number one goal with
the Reverse Mortgage is to get your hands on as much money as possible this is the option for you.
If your priority is to preserve as much equity in your home while still leaving access to a line of credit to have in case of an emergency this is the product
you would want to choose. If you review the amortization schedule for this product, you will see that over the years your outstanding loan balance with
this selection will be lower than the other product options.
With this product option you will keep your closing costs as low as possible in order to establish your Reverse Mortgage. If you are most concerned
with the costs to set up the loan and less concerned with the amount of proceeds you will receive, this is the product I would recommend for you.
As the name indicates this is a Fixed Rate loan option. Your rate would never be subject to change if you choose and close on this product option.
This is the option you would select if your biggest priority was to secure a rate that would not be subject to change. Fixed Rate loans are a single
disbursement lump sum so there is no option for a credit line. Depending on your individual circumstances, a Fixed Rate loan option may not provide
you with as much available loan proceeds as one of the adjustable products so you will want to compare the amount of proceeds available when making
your decision.
If your current home value is higher than $1.25 Million, this is a product you will want to look at in comparison to the Government product.
The Government Insured Reverse Mortgage has a maximum value currently of $679,650. This means that any additional value above that
figure is not factored into the loan amount calculation. Having a value higher than $679,650 does not prohibit you from still considering the
Government Product, but at higher home values, this product may provide you with significantly more funds available than the Government
Product can. There is no Mortgage Insurance Premium on this product so the closing costs are usually lower for this product in most cases. This is a
Fixed Rate product so the proceeds are given as a lump sum only in lieu of the option for a credit line. If you have a larger existing mortgage or are
looking to receive additional proceeds above what the Government product can provide, this is the best option to accomplish that goal.
Great! It looks like your home value estimate is about $~hvalue~. If you feel this estimate is not correct you can manually change it below. If you have an
existing mortgage balance I'll need to know the amount we are going to pay off to get rid of that mortgage payment!
I was unable to fetch a home value for the property details given. Please input the value manually below. If you presently have an
existing mortgage on your home this info will be needed as well.
About Line of Credit
Your Reverse Mortgage Line of Credit is subject to the Line of Credit Growth calculation. The Line of Credit Growth Rate is the combination of your Initial
Loan Rate and the Mortgage Insurance Renewal Rate. The Line of Credit Growth Calculation is based on how much money is available
in your Line of Credit that has not yet been advanced. If you advance 100% of the funds in your Line of Credit, there would be no
further growth as there would be no remaining funds available in your Line of Credit. Your Line of Credit Growth Rate is variable because the
Initial Loan Rate is a variable that is subject to change once per year on an Annual Adjustable Loan.
About Cash at Closing
HUD guidelines limit the amount of money that you are allowed to receive at time of closing and during the first 12 months after the loan has been closed.
This dollar amount is how much money would become available to you from the Line of Credit once you reach 12 months from the day your loan closes
based on the estimated figures you have provided for this calculator.
About Loan Balance
Your Reverse Mortgage Loan Balance will increase over time as you are not required to make any monthly mortgage payments with a Reverse Mortgage loan.
The Interest and Mortgage Insurance Renewal will accumulate based on the outstanding Loan Balance. You can make payments on the Reverse
Mortgage to prevent this balance from increasing if you want to, but it is not required. The Reverse Mortgage loan is a Non-Recourse loan which means
you cannot owe more than the value of your home.
About Property Value
This calculation is based on the standard HUD disclosure of 4% per year expected property value appreciation. This is not a guarantee of what your
home value will be in the future and is just for illustration purposes only. Your Property Value will adjust up or down as the local real estate market
conditions dictate.
About Home Equity
Home Equity is the difference of your Property Value minus your Loan Balance. This is also a calculation for illustration purposes only and not a
guarantee of what your home equity will be in the future. Your Home Equity will vary depending on how much your Loan Balance becomes
compared to what your Property Value is at any given time in the future.
About Existing Mortgage
If your home currently has a mortgage, please specify the full amount balance in the existing mortgage field.
Doc Preparation
This is a 3rd party service selected by the Lender that is responsible for preparing the final closing documents which include the note,
deed of trust, agreement, etc. They are responsible for making sure that the documents are in compliance with local and federal guidelines.
Flood Certification
This is a 3rd party service that is responsible for ascertaining whether or not a property is located in a Flood Zone as determined
by FEMA and provides a Life of Loan determination/guarantee
Mortgage Insurance Premium or MIP
This is the fee that is paid directly to HUD at closing of the loan to insure the individual loan under the HECM program.
Settlement or Closing Fee
This is a 3rd party service that is responsible for handling the settlement or closing of the loan.
They work with the title company to get the public records information, they work with existing lenders to obtain payoffs, coordinate
with the lenders for funding and the counties for recording of the loan.
Counseling Fee
This is a 3rd party service that is providing the counseling session to each Reverse Mortgage applicant
in the beginning stage of the process. This is a HUD requirement in order to start the Reverse Mortgage process.
The counselors are tasked with educating the borrowers about Reverse Mortgages as well as determining if there are
any other types of financing they may qualify for.
Appraisal Fee
This is a 3rd party service again as well. The appraisal fee goes to an Appraisal Management Company or AMC. Their
responsibility is to assign the appraisal order to a local FHA approved appraiser in the same market area as the property of
the Reverse Mortgage borrower and to be the go-between for the Lender and the appraiser to maintain appraiser independence.
They also are required to review all appraisals for errors or omissions prior to delivering the report to the Lender.
Credit Report
This is another 3rd party service. The credit company is required to provide a full credit report from all 3 bureaus (Experian, Transunion & Equifax)
for each Reverse Mortgage applicant to determine the borrower’s credit scores, credit history and any delinquencies or public record items.
This is a necessary step in the process as a Lender must review a borrower’s credit history for specific items to determine eligibility into the program.
Lender’s Title Insurance
This is a 3rd party service that is required for any type of loan that is done and is not specific to Reverse Mortgages. For every loan done, a title
report must be obtained from a Title Company and the company has to insure the Lender in the transaction for the required dollar amount based
on appraised value, etc. The fee for title insurance usually varies by loan type and from state to state.
Endorsements
Lenders require various different types of endorsements to the title policy based on the type of loan being given. For a Reverse Mortgage,
some endorsements that are required are the Neg-Am and Environmental and in order to provide these endorsements to the policy,
there are usually additional charges. Other such endorsements that are required can vary based on property type (ex. Condo, PUD, Manufactured Home).
The charges for these endorsements will vary from state to state.
Recording Charges Mortgage
Whenever a new loan is completed, the Security Instruments (Deeds of Trust or Mortgage – verbiage varies from state to state) must be
recorded with the county recorder’s office to finalize the transaction. There is always a charge to record documents and that is why there is a
Recording fee for all loans. Recording charges can vary from County to County and State to State as well.
Notary
All final loan documents must be executed in front of a notary as there are documents that require notarization such as the deed of trust.
This is a 3rd party service and is based on the amount that the signing service will charge to handle the signing
and notarization of all necessary documents.
Initial Draw From You Credit Line
The quote and pricing terms on this page are based on a max initial lump sum. If you would like to receive a lesser amount at closing than is shown,
please enter that amount in the box below and click on calculate
Up to $20,000+ More in Available Proceeds*
*Scenario Illustrated: Age 67, Home Value 300,000. Difference of All Reverse Mortgage lower rate improves principal limit by $22,200
Our lower rates provide greater advantage of your home’s equity.
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