HECM Fixed Standard - main features

• fixed interest rate
• upfront lump sum ( not taxed )
• upfront mip 2%
• pay interest on full lump sum

Designed for seniors who want or need the maximum amount of equity out of their homes and are also interested in a fixed rate HECM. You will pay the full 2% upfront mortgage insurance and some lenders will work with you on eliminating origination fee on the loan.

Currently many seniors who have a first mortgage or large liens against the home are utilizing the HECM Fixed to pay off their existing debts, improve their retirement cash flow by getting rid the debt payments, while this is a costly option it works very well for many seniors ( specially when taking home appreciation and offset savings from higher interest mortgage loans.)

HECM Adjustable Standard - main features

• adjustable interest rate
• select how receiving the income/funds ( credit line, monthly income )
• upfront mip 2%
• pay interest on amount borrowed only

seniors who also want the full equity out but do not mind taking an adjustable rate mortgage option which has lower interest rates due. You will also be liable for the 2% upfront mortgage insurance which goes into the loan costs, lenders will most likely charge an upfront origination fee of 1-2%.

The lower adjustable rates can come in handy when you need some new income/funds in your retirement and have plans to sell the home in a few years. Seniors can also look at this option to pay off an existing mortgage as the adjustable rates are very low right now.

HECM Saver Fixed - main features

• receive a lump sum upfront
• not taxed ( never taxed )
• upfront mip .01% (substantial savings )
• pay interest on full amount upfront
• less equity available compared to HECM standard

pay less in upfront mortgage insurance (.01%), receive a smaller portion of the homes equity and get into a fixed rate option – this is usually utilized by seniors who have a substantial amount of equity in the home – money will come as a credit line or as monthly income ( or combination).

HECM Saver Adjustable -

• receive credit line or monthly income
• not taxed ( never taxed )
• upfront mip .01% (substantial savings )
• pay interest on borrowed portion only
• less equity available compared to HECM standard programs

dont mind an adjustable rate mortgage or receiving less of your homes equity – also utilized by seniors with more equity in the homes – this can be one of the cheapest options of the HECM loans as the interest rates for the adjustable programs are the lowest – mortgage insurance is also (.01%) thus savings is realized with this option.