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Contact us at:
877.574.1000
Toll-Free
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As more Reverse Mortgage Loan product options become available, it may seem confusing as to which program may be right for you. To determine the correct product option to consider, you should analyze your current financial situation and then decide on the financial outcome you are trying to achieve with a Reverse Mortgage Loan.
We suggest that you seek input from your trusted advisor network, which may include your family members, friends, financial professionals and of course, the staff of specially trained Reverse Mortgage Professionals at 1st Reverse. Feel free to call us toll-free at 877-574-1000 to discuss which program might be right for you!
Click below or scroll down to compare Reverse Mortgage Loan Programs:
Fixed4Life Fixed Rate Reverse Mortgage Loan
HECM PathwayTM
HECM 100 Reverse Mortgage Loan
HECM 150 Reverse Mortgage Loan
HECM Annual Reverse Mortgage Loan
HOMEKEEPER Reverse Mortgage Loan
Fixed4LifeTM XL JUMBO Fixed Rate Reverse Mortgage
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Product:
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Program Type:
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Home Equity Conversion Mortgage (HECM)
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Index & Margin:
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Index: N/A
Margin: None
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Rate Change Frequency:
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N/A
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Periodic Rate Adjustment Cap:
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N/A
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Lifetime Interest Adjustment Cap:
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Initial rate is fixed for the life of the loan.
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Insured By:
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Federal Housing Administration (FHA)
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Features:
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- Fixed interest rate for the life fo the loan
- The full amount of available funds must be drawn at closing
- Line of credit and monthly payment features are not offered
- Interest rate is set 48 hours prio to date of closing
- Funds can be used for any purpose, without restriction
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Benefits:
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- Rate Certainty = No Surprises
- Interest rate is fixed for the life of loan
- Estate planning considerations much easier to determine
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Consider This Option When:
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You plan on drawing all available funds from your Reverse Mortgage Loan and when you are seeking the benefits a fixed rate of interest provides compared to adjustable rates.
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Product:
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Program Type:
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Home Equity Conversion Mortgage (HECM)
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Index & Margin:
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Index: 10 year CMT US Treasury
Margin: Changes weekly - contact our office for current quote
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Rate Change Frequency:
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Monthly
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Periodic Rate Adjustment Cap:
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None
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Lifetime Interest Rate Cap:
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10% over starting rate
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Insured By:
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Federal Housing Administration (FHA)
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Features:
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- This loan was created to assist borrowers who traditionally have had difficulty in financially qualifying for sufficient funds from a Reverse Mortgage Loan to satisfy outstanding liens or meet financial goals
- Margin offered is typically lower than other types of FHA insured HECM Reverse Mortgage loans, thereby providing enhanced funding possibilities for borrowers facing financial hardships
- Financial hardships related to the HECM PathwayTM program are defined as borrowers required to bring funds to closing or receiving less than $5,000.00 in proceeds from a Reverse Mortgage Loan
- Features all the same options, benefits and protections of all FHA insured HECM Reverse Mortgage Loans
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Benefits:
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- Provides higher available proceeds options at loan funding
- Helps those borrowers that "just missed" qualifying financially to have another option to assist them in obtaining a Reverse Mortgage Loan
- "Helps those that need help the most!"
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Consider This Option When:
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You are unable to qualify for sufficient funds under other versions of a Reverse Mortgage Loans to settle your property´s outstanding liens or you are receiving little to no additional financial benefit after closing.
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Product:
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Program Type:
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Home Equity Conversion Mortgage (HECM)
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Index & Margin:
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Index: 1 year CMT US Treasury
Margin: 1.00%
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Rate Change Frequency:
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Monthly
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Periodic Rate Adjustment Cap:
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None
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Lifetime Interest Rate Cap:
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10% over starting rate
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Insured By:
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Federal Housing Administration (FHA)
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Features:
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- Lowest offered margin of all HECM Reverse Mortgage Loans
- Multiple payout methods available, including lump-sum, line of credit, monthly payments and/or combination
- Creditline growth rate available when line of credit is selected payout methodology and all available funds are not fully drawn. Creditline growth applies to unused available funds.
- Funds can be used for any purpose, without restriction
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Benefits:
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- Lower margin provides enhanced available funding amounts
- Creditline growth provides access to additional funds over time.
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Consider This Option When:
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You are interested in maximizing the available funds from your Reverse Mortgage Loan or when you are interested in having a full assortment of payout options to choose from.
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Product:
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Program Type:
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Home Equity Conversion Mortgage (HECM)
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Index & Margin:
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Index: 1 year CMT US Treasury
Margin: 1.50%
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Rate Change Frequency:
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Monthly
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Periodic Rate Adjustment Cap:
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None
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Lifetime Interest Rate Cap:
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10% over starting rate
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Insured By:
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Federal Housing Administration (FHA)
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Features:
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- Multiple payout methods available, including lump-sum, line of credit, monthly payments and/or combination.
- Higher creditline growth rate than the HECM 100 loan option when line of credit is selected payout methodology and all available funds are not drawn. Creditline growth applies to unused available funds.
- Funds can be used for any purpose, without restriction
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Benefits:
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- Lower potential upfront costs than other HECM Reverse Mortgage Loans.
- Enhanced creditline growth rate provides access to more available funds in the future.
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Consider This Option When:
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You are considering the creditline option as one of the components of your payout methodology and the available funds are sufficient for your needs. Also, the lower up-front cost structure may provide enhanced proceeds.
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Product:
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Program Type:
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Home Equity Conversion Mortgage (HECM)
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Index & Margin:
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Index: 1 year CMT US Treasury
Margin: 3.10%
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Rate Change Frequency:
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Annual
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Periodic Rate Adjustment Cap:
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2% at any scheduled change date
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Lifetime Interest Rate Cap:
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5% over starting rate
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Insured By:
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Federal Housing Administration (FHA)
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Features:
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- Rate caps are significantly lower than other adjustable HECM products
- Annual adjustment period vs. monthly adjustment period on most Reverse Mortgage Loans (except the Fixed4Life HECM) provides more rate stability
- Multiple payout methods available, including lump-sum, line of credit, monthly payments and/or combination.
- Provides the highest creditline growth rate of all Reverse Mortgage Loans. Creditline growth applies to unused available funds.
- Funds can be used for any purpose, without restriction
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Benefits:
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- Enhanced rate stability
- Highest creditline growth rate available through a HECM Reverse Mortgage Loan
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Consider This Option When:
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You are seeking to access the highest creditline growth rate for future access to funds. Also consider as an option when you are seeking to "set-up" your financial abilities in the future without needing all the available funding available through other versions of the HECM Reverse Mortgage products.
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Product:
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Program Type:
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Fannie Mae version of a Reverse Mortgage Loan
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Index & Margin:
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Index: 1 year CMT US Treasury
Margin: 3.10%
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Rate Change Frequency:
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Monthly
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Periodic Rate Adjustment Cap:
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None
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Lifetime Interest Rate Cap:
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12% over starting rate
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Insured By:
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N/A
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Features:
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- Uses the national Fannie Mae Lending Limit as basis to determine value for calculation of available benefits which is typically higher than the Lending Limits established by FHA for HECM Reverse Mortgage Loans
- Multiple payout methods available, including lump-sum, line of credit, monthly payments and/or combination.
- Typically has lower upfront costs than HECM Reverse Mortgage Loans
- Funds can be used for any purpose, without restriction
- May be used to purchase a home
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Benefits:
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- Fannie Mae Lending Limit may provide access to additional funding for properties that exceed FHA lending limits
- Alternative to FHA created program for individuals unable to qualify for FHA insured loan programs
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Consider This Option When:
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You are interested in accessing a lower upfront-cost version of a Reverse Mortgage Loan and also if your property´s value exceeds the established lending limits of FHA.
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Product:
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Program Type:
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Proprietary Jumbo Reverse Mortgage Loan
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Index & Margin:
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Index: N/A - Fixed Rate
Margin: N/A - Fixed Rate
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Rate Change Frequency:
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N/A - Fixed Rate for life of loan
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Periodic Rate Adjustment Cap:
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None
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Lifetime Interest Rate Cap:
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N/A - Fixed Rate for life of loan
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Insured By:
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N/A
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Features:
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- Properties up to $20 million in value are eligible (higher value homes considered on a case-by-case basis)
- Full lump sum draw of available proceeds must be fully drawn
- Equity protection feature allows borrowers to limit the amount of equity used in calculating available proceeds
- Can be used for HOME PURCHASE!
- Can be used to refinance primary residences and SECOND HOMES!
- Interest rate is fixed for the life of the loan
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Benefits:
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- Provides higher available proceeds to borrowers with high value homes
- Absolute rate certainty for financial planning considerations
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Consider This Option When:
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You have a high value home and wish to access a greater amount of the property´s equity while enjoying the benefits a Fixed Rate Reverse Mortgage Loan provides while having the option to pay Zero Closing Costs.
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