Reverse Mortgage fixed rate lower than 5.56?

By
Mortgage and Lending with Reverse Mortgage Advisor

I had a potential borrower tell me he found a lender that offered a fixed rate reverse mortgage lower than 5.56%. Has any one come a across a lower rate? Who is the lender?

Comments (2)

Susan Templeton
Bellingham, WA

FHA Reverse fixed rates are pretty standard fare based on an index and margin. If you are referring a borrower it's important you offer FHA guaranteed programs. There may be lower rates but if the loan is not guaranteed by HUD your borrower could have an estate issue if they need to buy out or at the end of their term. FHA does NOT foreclose on homes even if the value declines.

Apr 04, 2009 11:59 AM
Donald Sutherland
Mortgage Network - Woburn, MA

Angella,

 

I am not aware of any fixed rate program lower than the MetLife fixed...my understanding is that they sell their fixes through GNMA versus FNMA (all other reverse providers), that is why they can offer such a niche product.

5.56 expected rate provides more dollars for our clients, especially in this raising 10 year yield environment...in many instances, the adjustable reverse products provide less dollars and the interest rate spread is closer to the fixed.

The Libor 2.75 (if available) expected rate is an option for clients needing the maximum dollars, but also want a lower interest rate.

Hope this is helpful,

Donald

 

 

May 27, 2009 02:07 AM