Reverse-Mortgage-Truth.com

Non-FHA Jumbo Reverse Mortgages:
Financial Freedom Cash Account Advantage Reverse Mortgage: 6.66% (Index is 6 month LIBOR at 3.16% plus margin of 3.5%)
Fixed Rate Jumbo Reverse Mortgage: 8.625% (available on home values up to $10,000,000)
LLS Financial EPA Jumbo: 6.65%

FHA Reverse Mortgages:
HECM, which is the FHA Home Equity Conversion Mortgage rate is 3.64% (Index is the 1 Year CMT at 2.14% plus a margin of 1.5%)
The fixed rate HECM is at 6.56% to 6.83% (depending on the bank)

Get a reverse mortgage quote for the details and Total Annual Loan Cost (like APR). These interest rates do not include closing costs.

FHA Reverse Mortgages:
FHA Home Equity Conversion Mortgage (HECM) rate is unchanged this week at: 3.66% (Index is the 1 Year CMT at 2.16% plus a margin of 1.5%)
The FHA Fixed rate HECM Reverse Mortgage: 6.31% to 6.55% (depending on the bank)

Jumbo Reverse Mortgages:
Financial Freedom Cash Account Advantage Reverse Mortgage: 6.66% (Index is 6 month LIBOR at 3.16% plus margin of 3.5%)
Fixed Rate Jumbo Reverse Mortgage: 8.375% (available on home values up to $10,000,000)

Interest rates do not account for closing costs and are not APR’s. Feel free to contact us or your lender for a reverse mortgage quote.

FHA Reverse Mortgages:
The FHA Home Equity Conversion Mortgage (HECM) rate is the same as last week at 3.57% (Index is the 1 Year CMT at 2.07% plus a margin of 1.5%)
The FHA Fixed rate HECM Reverse Mortgage: 6.31% to 6.45% (depending on the bank)

Jumbo Reverse Mortgages:
Financial Freedom Cash Account Advantage Reverse Mortgage: 6.64% (Index is 6 month LIBOR at 3.14% plus margin of 3.5%)
Suspended: Bank of America Independence Plan Reverse Mortgage

Interest rates do not account for closing costs and are not APR’s. Feel free to contact us or your lender for a reverse mortgage quote.

The option ARM mortgage has many names, including “pay-option mortgage”, “negative amortization loan”, “pick-a-payment”, or “deferred-interest loan”, to name a few. Similar to the reverse mortgage, it allows a homeowner to pull out a lump sum of equity, while only taking on a relatively small mortgage payment. A few differences are that the homeowner can be of any age, but the money must be taken as a lump sum (no credit lines). Although the interest rate is generally between 6% and 12%, the borrower only makes monthly payments for between 2% and 5% annually of the loan balance. This gets paid monthly (take 2% to 5% and divide by 12). For example, if the payment is 5% and the interest rate is 8% (a common scenario), then the interest that is not being paid is 3%. (8% minus 5%). Similar to a reverse mortgage, the lender allows that 3% of unpaid interest to be repaid at a later date by adding it to the principal balance of the loan. Thus, the loan balance grows over time, even though payments are being made. But there is a limit on how much the loan balance is allowed to grow. Depending upon the lender, once it reaches around 110% to 115% of the original loan balance, a full mortgage payment must be made.

Part 4 will follow in a couple days.