Yesterday,  I posted about Virtual Bank’s LIFE Plan product which is the first proprietary product developed to compete directly with the HECM product.  Virtual Bank has another product that aims at the HECM market called Prime LIFE.  The Prime LIFE product is the first reverse mortgage based off prime and has lower fees when compared to the LIFE Plan and HECM. Below are the details of the product:

Prime LIFE

• Product Type – Floating HELOC
• Index = Based on Prime Rate
• Margin = 50
• Caps – 6% for the life of the loan
• Initial Rate = Prime + 50
• Max Loan Amount = $312,750 (based on age)
• Purchase or Refinance
• Owner Occupied Only
• Single Family, Condos, Co-Ops (NY City only)
• One Appraisal needed
• Servicing – $30/month
• Broker Fees – 2% origination fee
• Virtual Bank Admin Fee = $325 (Paid by Borrower)

Along with the Prime LIFE and LIFE Plan, Virtual Bank also offers a jumbo product called the Mega LIFE.  More details to follow in a few days.

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