Annually adjusting Home Equity Conversion Mortgages (HECM's) have been around forever, but no one ever used them because the difference between them and monthly adjustables, in how much you got was huge.
To be honest, I stopped looking at Annuals a while ago; but recently a few borrowers asked me about it and I was suprised to see that, due to the crazy movement in rates, the difference is pretty small.
The biggest advantage of the annual is that the rate cap is only 5 (This means that the rate can only go up 5 percent above the start rate)as opposed to the 10 cap of the monthly loans.
I had thought that this product was going to be discontinued, but it looks like it will have new life (if rates stay where they are)
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