I received some information from Countrywide regarding there reverse mortgage product offering over the weekend. At the moment they are offering the HECM annual and semi-annual (both based off the HECM 100) as well as their Simple Equity™ program which is their proprietary jumbo product. Below are more details of the Simple Equity™ program.
- Eligible Homes – SFR, Condo, PUD, 1-2 Units (borrower(s) must occupy one of the units)
- Monthly Servicing fee – $20
- No minimum cash drawn at closing
- Variable Semi-Annual Libor ARM
- Margin – 3.5%
- No period cap, lifetime cap = 6 points above interest rate
- Funds are available as
- Lump sum – all of the available line taken out at close
- Term – a fixed monthly payment for a specific amount of time
- Line of credit – credit line grows monthly at .417% or 5% annually. Minimum line of $50,000
The website allows you to input the borrowers information and get pricing details which I prefer over the software that most reverse mortgage lenders require you to use. If you are an FHA approved broker with countywide the reverse product suite should be available to you.
I hope everyone had a great Easter weekend, cheers!