NEW PRODUCT RELEASE FROM FAR:
The Jumbo HELOC Reverse Mortgage “HomeSafe” Select
2018 has seen the introduction of a number of new reverse mortgage products.
One of the newest is ‘HomeSafe Select,’ an addition to the HomeSafe lineup from Finance of America Reverse (FAR).
Available for borrows aged 62+ in California (addition states expected in the future), the non-recourse, non-FHA reverse mortgage features an initial closed-end draw of 25% of the loan proceeds at closing. The remainder of funds is available to borrowers as an open-ended line of credit with a 5% internal rate of growth to be drawn and repaid at any time. Like the HECM, HomeSafe Select is a non-recourse loan.
To demonstrate how the product can be used, FAR provided the following example:
With HomeSafe Select, a 72 year old in California with an $800,000 home value and an $80,000 balance on the first mortgage may be able to receive $270,400 in proceeds after paying off the first mortgage versus receiving approximately $220,000 with the HECM. The borrower’s value in the line of credit could be $300,301 at the end of year three and $425,833 at the end of year 10.
ADDING FLEXIBILITY & GROWTH TO RETIREMENT
According to FAR president Kristen Sieffert, “With HomeSafe Select, people can start planning for retirement today and also benefit from a growing line of credit that can be accessed when they need it.” She also believes it is a product that will bridge the gap between HECMs and proprietary products.
At the moment, HomeSafe is the only adjustable rate proprietary reverse mortgage on the market, with the open-end adjustable rate based on the Wall Street Journal 3-month LIBOR index.
- Availability for properties valued up to $10,000,000
- Loan proceeds up to $4,000,000
- No monthly or annual mortgage insurance premium
- No pre-payment penalties
- No FHA approval required for condos valued over $500,000
- Open-end adjustable rate based on WSJ 3-month LIBOR index
Would you like to know if you can refinance your current reverse mortgage into the HomeSafe Select product?
Contact me to see if refinancing is possible and will add additional cash and benefits.