As predicted by some, the lowest, fixed rate, reverse mortgage is quickly becoming the “go to” product for the industry. Boasting the highest pay out to the borrower and the lowest fixed rate available, the product has the added benefit of a note rate lower than the new HECM expected interest rate. By lowering the expected rate on the new HECM, HUD provided an unexpected benefit to the borrower along with the unfortunate higher MIP tacked-on to the ongoing fees in the program.
For borrowers closing after October 4, 2010, the new lower expected interest rate is available with the 4.99% fixed rate product. This lower rate will yield more money to the borrower. Call me for a current quote or illustration.
Michael Manfredi is a Reverse Mortgage Specialist in Phoenix, Arizona
Reverse Mortgage Concepts
Phoenix, AZ 85020
(602) 456-0009
(888) 697-5556
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