Reverse Mortgage Products & Rates Explained
Agency for Consumer Equity Mortgages, Inc. offers several different reverse mortgage options to best fit your financial needs. We realize that one size (product) does not fit everyone and every situation. Here at Consumer Equity we take great pride in discussing with our borrowers what their exact financial goals are and the best way of achieving them.
Types of Reverse Mortgages:
1. Home Equity Conversion Mortgage (HECM)
The Home Equity Conversion Mortgage (HECM) is the oldest and most popular reverse mortgage product. This product is insured by the FHA/HUD. It is 100% insured by the “full faith and credit of the United States government”.
2. Fannie Mae Home Keeper & Home Keeper for Home Purchase
Mortgage investor Fannie Mae developed its own proprietary Home Keeper® reverse mortgage to supplement the federally insured Home Equity Conversion Mortgage.
3. Proprietary Products
These products are designed for the higher valued home more than the government (HUD) limits for your particular county. In most instances, these products usually offer more of an entitlement of your equity.
Types of Reverse Mortgages:
1. Home Equity Conversion Mortgage (HECM)
The Home Equity Conversion Mortgage (HECM) is the oldest and most popular reverse mortgage product. This product is insured by the FHA/HUD. It is 100% insured by the “full faith and credit of the United States government”.
2. Fannie Mae Home Keeper & Home Keeper for Home Purchase
Mortgage investor Fannie Mae developed its own proprietary Home Keeper® reverse mortgage to supplement the federally insured Home Equity Conversion Mortgage.
3. Proprietary Products
These products are designed for the higher valued home more than the government (HUD) limits for your particular county. In most instances, these products usually offer more of an entitlement of your equity.
** Consumer Equity Guarantee:Please be assured Consumer Equity will always compare each product to see which will be most beneficial for your particular situation.
RATES
Rates: All interest rates are based on indexes used by various lenders. Typically, we will update these rates weekly, but sometimes, lenders make adjustments to rate more frequently. Here are the most common indexes used and their definitions to determine rates by lenders:
Rates: All interest rates are based on indexes used by various lenders. Typically, we will update these rates weekly, but sometimes, lenders make adjustments to rate more frequently. Here are the most common indexes used and their definitions to determine rates by lenders:
- One-Year Treasury Constant Maturity is an index published by the Federal Reserve Board based on the average yield of a range of Treasury securities, all adjusted to the equivalent of a one-year maturity. The index is used most commonly for FHA Adjustable products.
- LIBOR indexes (1-Month, 6-Month) are among the most common of benchmark interest rate indexes used to make adjustments to adjustable rate mortgages. LIBOR stands for London InterBank Offered Rate. It's the rate of interest at which banks offer to lend money to one another in the wholesale money markets in London. It is a standard financial index used in U.S. capital markets. The index can be found in the Wall Street Journal. These indexes are used most commonly for Lender specific products.
