Seattle Mortgage just recently made a change to their Independence Plan (SM) which is one of the new jumbo reverse mortgage products on the market. The standard Independence plan has a margin of 3.60% but now if the borrower is willing to keep their LTV a bit lower they are willing to cut the margin to 2.10%. “The new 2.10% product results in significantly lower interest costs to our borrowers over the life of their loan. For example, on a typical loan amount of $300,000 for 8 years, the borrowers would save over $67,800 in interest expense, thereby preserving more home equity,” says John Nixon, Executive Vice President and COO of Reverse Mortgage of America, a division of Seattle Mortgage Company.
In the last week Seattle Mortgage has released the Reverse Mortgage Checking Option and now the option to lower the margin on their proprietary product. I am expecting things to get even more competitive in the next few weeks with a few new jumbo products that are set to be released.
If you would like to check out the rest of the press release check out the link below.