Reverse Mortgage HECM 100

Friday, February 09, 2007

HECM 100, a FHA/HUD insured Home Equity Conversion Mortgage (HECM), has an interest rate one-half percent lower than the current HECM rate, giving senior homeowners greater cash benefits up front along with lower interest costs over the life of the loan.

Federally insured HECM reverse mortgages account for more than 90% of the reverse mortgages currently in effect in the United States. The amount of funds that a senior homeowner is eligible to receive under this program is based on a formula that takes into consideration four basic factors:
1. The age of the senior homeowner (or the age of the youngest spouse in the case of couples, with the minimum age being 62).
2. The current market value of the home.
3. Current interest rates.
4. FHA established county lending limits.

What does half of a percentage point mean to a consumer?
For a 70 year old senior who owns a home valued at $300,000, the HECM 100 will mean that this homeowner could receive approximately $13,000 more in cash upfront from the proceeds of the loan than with the traditional HECM. Additionally, at today’s interest rates, the senior homeowner, or their heirs, would also save approximately $28,000 in interest costs over the expected life of the loan under the terms of the HECM 100 reverse mortgage program.

You can also call 1-888-973-8377 to speak with a Reverse Mortgage Loan Officer with a Reverse Mortgage Lender.