Today, BNY Mortgage announced the release of the HECM Fixed Rate (SM) product which is the first fixed rate reverse mortgage being offered since the early 1990s. This is the first of two fixed rate reverse mortgage products that BNY Mortgage is expected to release this month. The HECM Fixed Rate is targeted at borrowers with loan amounts up to $400,000, while the next program is targeted at the jumbo reverse mortgage market.
The HECM Fixed Rate (SM) reverse mortgage product enables borrowers to have the comfort of knowing exactly how much money they may pass on to their estate. Also, according to a recent article from Heraldnet, “we can expect the rate to hover near 6.5 percent, not including the mortgage insurance premium”. Robert Sivori, co-president of BNYMC says, “Consumers tell us all too often about the limited choices available in reverse mortgages. The time is right to focus on offering older homeowners more choices while giving them a greater sense of financial well-being. HECM Fixed Rate (SM) provides the homeowner certainty of cost, an assurance that is not available with a floating rate product.”
Currently the HECM Fixed rate is available directly from BNYMC in most states and will be available from select BNYMC wholesale partners in the coming weeks. To read a copy of the press release click the link below.