Cap 5 Program

The Cap 5 Program, is available only under the Adjustable HECM Program, and it caps the lifetime interest rate to 5% above the start rate.  Unlike the regular cap of 10% above the start rate, this program limits the total increase to your interest rate over the life of the loan to just 5% above the start rate.  This is a great feature for those who are skecptical about our financial future in the Country.  Better to start rotecting yourself now.



Refinancing to a Reverse Mortgage


When you take out an Adjustable Reverse Mortgage, you have several options in how you can take your money.  Here will we discuss the ways in which you can take your loan money.


1. Lump Sum:  This is a one time draw which gets you the total money available to you through the Reverse Mortgage loan. 


2. Tenure: This is when a monthly draw is credited to your Bank account each month for the rest of your life.  Very similar to how Social Security checks work.  Every month, there is a deposit for the same amount into your checking account.


3. Credit Line: This will allow you to have your net Principal Limit available to you at any time when you need cash.  A simple phone call to Customer Service, and your requested dollar amount (up to your line limit) will be credited to your designated Bank account.


4. Term:  This is where you decide to take your designated amount for a specific time period in years.  Remember at the end of the term period, you will no longer have any cash credit in your Reverse Mortgage account.


5. Combination of  the above.  For example, from your loan limit amount you may take a lump sum at closing for $10,000, and a Tenure amount for the remaining allowance, say $375.00 per month for life.  Or a lump sum amount at closing for $7,500, and the balance in a credit line.  Or say, $5,000 lump sum, a monthly amount of $150, and the remaining amount in a credit line.


When you opt for a Fixed Rate Saver Program, you must take  the Principal Limit Loan amount in one Lump Sum amount.  There no other choices with this program. In addition, the Fixed Rate Saver program will give you about 15% to 20% less cash out of the Equity in your home than the Standard Adjustable Program will.



This is a very versatile product and can be shaped to fulfill your personal needs.





Qualifications for a Reverse Mortgage



No Employment Verification!
No Monthly Mortgage Payments!
Primary Residence Only.
62 Years of age or Older.


Your home may currently have a small mortgage on it, or be free and clear of mortgages, in either case, you may qualify.


Also, the condition of your home does not have to be pristine.  If you currently have a need for repairs, this can be taken into consideration, and your loan will be subject to those repairs.