The New HECM: April 2014

Annual Adjustable Returns

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When I first started writing Reverse Mortgages there were only two options, the monthly adjustable and the annual adjustable. The annual at the time was a much higher rate and therefore not many opted to take it, and it was phased out.

Now the annual adjustable Reverse Mortgage is back and is offered at the same initial interest rates and margins as the monthly adjustbale. This allows for a more stable option for seniors and should be well received.

The annual adjustable offers all the benefits of the traditional monthly adjustable; the line of credit, the monthly check and the lump sum. The only real difference is that the rate is fixed for the first year and then only adjusts at an annual interval rather than the monthly adjustments now offered.

The other key benefit is the cap on the rate is only 5% vs. the 10% on the monthly adjustable, and there is a cap of 2% per adjustment period. These caps should give a greater sense of security as rates start to rise.

Keep in mind that the line of credit growth rate, so popular in financial planning, still applies to the remaining balance of the line of credit.

Call today to see if this option is suitable for you!

1-800-497-5235

Reverse Mortgage Fast Facts

¨ All borrowers must be 62 years old or older.

¨ Borrowers retain ownership and occupancy of the home.

¨ No monthly mortgage payments

¨ Repayment isn't made until the home is sold or the last borrower permanently moves out or passes away.

¨ You will never owe more than the fair market value of your home at the time the loan becomes due.

¨ No income qualification.

¨ Interest and fees accrue until the loan is repaid.

¨ When the loan is due, your heirs have choices-they can repay the loan and keep the house or sell the home and repay the loan.

¨ Social Security benefits and Medicare are generally not affected by a Reverse Mortgage-consult appropriate government agencies.

¨ Closing costs and fees incurred can be financed as part of the loan.

Bob Tranchell

Director of Reverse Mortgages

My professional career has always centered on improving the lives of those I come in contact with. I spent 18 years in the ministry-many of them overseas in third world countries. I have been instrumental in building orphanages as well as programs serving orphans and seniors. Being Director of Reverse Mortgages has allowed me to stay in the service industry. I have a passion for my work because I have seen time and time again how home equity management allows my clients the quality of life, security, and stability they deserve. My goal is to establish a mutually beneficial relationship that will also benefit our clients!

If you or someone you know wishes to explore mortgage options - reverse or traditional - as a tool for providing financial security, please contact me and we can set up a meeting. It is my pleasure to serve you and those you care about.