Everbank was just recently bought by MetLife Insurance Company. MetLife is the second insurance company to buy a reverse mortgage company behind Genworth. Genworth bought Liberty Reverse earlier this year.
These purchases reinforce my thought that as Baby Boomers age you will see more and more highbred products customized to meet seniors and boomer retirement and cash flow needs. With rising costs and many being underfunded for retirement, our aging consumers will look for means and products to better their lives and support themselves. I think you will see long term care products attached to equity, life insurance attached to equity, products that will create cash flow, estate planning tools or a combination. Reverse mortgages in my opinion will be as common as forward mortgages or IRAs in the future.
Given these thoughts, Everbank offers all the FHA reverse mortgage products including the FHA fixed reverse mortgage. On the jumbo side, Everbank recently discontinued their reverse mortgage adjustable jumbo, and slimed down the "Reverse Select 1.0- 1.3". The Reverse Select 1.0 has no closing costs but can be expensive on the rate side. You do have the option to "buy" down your rate. The borrower has the comfort of knowing exactly what their rate and loan balance will be overtime. The product can be used for home purchase. A credit line for proceeds is not an option. Uniquely, there is an option for the borrower to take proceeds as a tenure option. The borrower may prefer this to create a steady income for life. As with all reverse mortgages, if the borrower owes anything on their property, the first mortgage must be paid off from the proceeds they qualify for. Partial prepayment is not allowed for the first year. Rates are not locked until 2 days before closing. The Reverse Select also has the equity protection option offered on other jumbo reverse mortgages. This means the borrower can preserve up to 50% of their equity and calculate their reverse mortgage proceeds on a goal amount depending upon their needs.
If you have questions on your reverse mortgage options, call Angella 866-949-7030, e-mail me at aconrard@gmail.com or log onto www.reverse-your-mortgage.com to learn more.
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