HECM Annual is a reverse mortgage loan whose interest rate adjusts only once a year, with a “lifetime cap” to ensure that your rate will never go beyond a certain percentage over the initial rate. In addition, there’s an “interval cap” that guarantees that the interest rate cannot increase by more than a certain percentage annually. And to help give you financial flexibility, you have the choice of taking the funds as a lump sum, monthly advances, a line of credit or a combination of these.
Reverse Mortgage Options
At Patriot Lending we offer different reverse mortgage options to fulfill your needs.
HECM FOR PURCHASE
This product allows seniors to purchase a new home and obtain a reverse mortgage loan in one fell swoop. With this product you can relocate closer to family or downsize to a home more suitable to your needs. A HECM for Purchase can be used to acquire a one-to-four unit property where constructions has been completed and the property is habitable.
HECM ADJUSTABLE RATE MORTAGE
The interest rate on this HECM fluctuates monthly, but it also offers more options for seniors— including a “rate cap” that guarantees that the rate will never go up more than a certain percent over the initial rate (depending on the loan options they choose). You can select a lump sum draw, line of credit, monthly advances, or a combination of these options. For example, one might choose to take some of the cash up front and put the rest in a line of credit, so it’s available if and when they need it.
HECM FIXED RATE
With an interest rate that’s established at the loan closing — and fixed for the life of the loan — you always know exactly how much interest is accruing on the loan. However, with a HECM Fixed Rate, homeowners are required to take all of the money at closing in one lump sum. This may be a desirable choice if you’re using the HECM to pay off an existing mortgage or to cover other immediate needs.