We have now unveiled a new fixed-rate HECM loan, the “Fixed Fortune,” after unveiling the HECM Fixed Advantage last month, in hopes of giving borrowers more options when looking for a reverse mortgage.
The fact of the matter is, fixed products are needed when it comes to reverse mortgages, especially because there is a market for them. By completely eliminating any fixed products, HUD alienated a potential sector of the market. By bringing it back, within the HUD guidelines, the new products should offer a solution to many borrowers who wanted the security of a reverse mortgage and a fixed rate.
According to an article published by Reverse Mortgage Daily, the HECM Fixed Fortune is, in essence, similar to the HECM Fixed Advantage because it allows borrowers to access additional proceeds after the initial draw.
However, it’s different because any additional funds after closing must be accessed in four annual draws over a four-year period. In other words, borrowers can access their funds once a year, so they receive a quarter of their funds yearly.
The HECM Fixed Advantage allows borrowers to withdraw their remaining funds a year after closing while borrowers can access their remaining funds in term or tenure payments over a four year period with the HECM Choice.
While the fixed reverse mortgage may have gotten borrowers in hot water before when they withdrew all their funds and had none left over to cover their financial obligations, the new fixed products are adamant in preventing this from happening again.
By adhering to HUD guidelines but still offering fixed products, the Fixed Fortune, which we offer, is tapping into an essential market that was left dangling when the changes came into play in October of 2013.
If you want more information on the reverse mortgage program give PS Financial Services a call at (888) 845-6630 or via email at info@PSReverseMortgage.com. We do not pressure those who inquire. We are simply here to help.