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Mortgage and Lending with Reverse Mortgage Advisor

FHA HECM Fixed Rate reverse mortgage is subject to the same guidelines as all HECM reverse mortgage. The loans are calculated on the county lending limit and vary from county to county. To find out the lending limit in your area go to: https://entp.hud.gov/idapp/html/hicostlook.cfm . There are a number of lenders that offer the HECM fixed reverse mortgage. Rates are quoted daily. A fixed rate reverse mortgage may sound appealing, after all you'll know exactly what you loan balance at any specific time during the loan period. However, consider that preferential rates are only available if the borrower takes the amount of proceeds they qualify for in a lump sum. A credit line or a tenure option is available but the rates will almost double by taking this option. The fixed rate generally is appealing to folks who do want a lump sum of money at closing or if the borrower owes a mortgage close to their qualified amount. One thing to watch for is if you do choose the fixed rate HECM, the loan rate does not lock until closing. This means amount of your proceeds will float until closing. If you owe an amount that is close to the amount you qualify for, one of the adjustable rate mortgages might be a better option. Many lenders offer a HECM reverse mortgage that adjusts either monthly or annually. These programs can lock your proceeds at the time of your application. HECM rates do not lock at closing however if the rates climb before you close, you will receive the maximum proceeds during your application period. It has also been suggested that if you choose a HECM adjustable reverse mortgage tied to the LIBOR index you will pay less in interest than if you choose a fixed rate HECM reverse mortgage.


For details on any reverse mortgage product please call Angella Conrard directly at 866-949-7030 or visit www.reverse-your-mortgage.com.