Reverse-Mortgage-Truth.com

Financial Freedom announced today that they are suspending their Cash Account Advantage program. This jumbo reverse mortgage was one of the first of it's kind in the industry and has helped thousands of seniors who have homes with high values. Like all jumbo reverse mortgages, it's loan amounts are not limited by the county FHA lending limits.

Fortunately, there are still several reverse mortgage lenders offering jumbo reverse mortgages. Contact your lender for a reverse mortgage quote.

The following are today’s reverse mortgage interest rates for the most popular reverse mortgage products:

HECM Reverse Mortgage rate: 3.13% (Index is the 1 Year CMT at 1.63% plus a margin of 1.5%)

Fixed rate Reverse Mortgage - HECM: 6.05% to 6.81% (depending on the lender)

Independence Plan 360 jumbo reverse mortgage: 6.28688% (Index is the 6 month LIBOR at 2.68688 plus a margin of 3.6%)

Independence Plan 210 jumbo reverse mortgage: 4.78688% (Index is 6 month LIBOR at 2.68688 plus a margin of 2.10%)

Cash Account Advantage jumbo reverse mortgage: 6.21% (Index is 6 month LIBOR at 2.71% [rounded] plus margin of 3.5%)

Interest rates are not an APR and do not include closing costs. Please contact your California reverse mortgage lender for a quote.

This is the third and final post in a series.

Another option is to ask your children or other relatives for money rather than get a reverse mortgage. And fortunately, they often want to help if they are able. Here are some important factors to consider.

Aside from the obvious loss of financial independence, pride of taking care of oneself and the potential creation of family conflicts, there are, in fact, hard costs to consider. If your relatives must sell some of their investments, they may owe capital gains tax and will lose the future return on those investments. If they are fortunate to make enough money from their paychecks to support you, they may be diverting income that could otherwise go into THEIR retirement accounts. Not only would they lose the future investment returns, but if their retirement account (such as a 401k) receives pre-tax money, they are losing an additional 25%-45%, depending on their income tax rate.

Finally, do not minimize the risk of spending down your savings and eliminating your financial cushion that allows you to comfortably cover the unforeseen expenses that will arise. A reverse mortgage line of credit could offer a far better financial cushion.

Using the funds that you have on hand can be a good way to accomplish your goals if those funds will last for the foreseeable future and if using them will not cost you more than would a reverse mortgage. Just be sure to add up the realistic cost of such a decision, and compare it to the other options before proceeding. Be sure to ask your lender for a reverse mortgage quote.

The following are today’s reverse mortgage interest rates for the most popular reverse mortgage products:

HECM Reverse Mortgage rate: 2.85% (Index is the 1 Year CMT at 1.35% plus a margin of 1.5%)

Fixed rate Reverse Mortgage - HECM: 5.79% to 6.81% (depending on the lender)

Independence Plan 360 jumbo reverse mortgage: 6.13938% (Index is the 6 month LIBOR at 2.53938 plus a margin of 3.6%)

Independence Plan 210 jumbo reverse mortgage: 4.63938% (Index is 6 month LIBOR at 2.53938 plus a margin of 2.10%)

Cash Account Advantage jumbo reverse mortgage: 6.040% (Index is 6 month LIBOR at 2.54% [rounded] plus margin of 3.5%)

Interest rates are not an APR and do not account for closing costs, click here for a Reverse Mortgage Quote