Today, BNY Mortgage released their Prime Advantage™ jumbo reverse mortgage product. This is the first jumbo reverse mortgage product that gives borrowers the financial certainty of a fixed interest rate for the life of the loan. Back in March, BNY Mortgage became the first lender since the early 90’s to offer a conventional fixed rate HECM product.
“With interest rates more than doubling over the past three years, many homeowners are uncomfortable with an adjustable rate,” said Robert Sivori, co- president, BNY Mortgage. “Prime Advantage eliminates this uncertainty by providing an opportunity to lock in a fixed rate at closing. It also provides the flexibility to eliminate lender closing costs and gives borrowers the comfort of knowing exactly how much money they will owe at any point in time. This is particularly helpful in the estate planning process.”
According to the press release, the product will have a rate that is comparable to many conventional forward mortgages. The Prime Advantage™ product allows the borrower to choose a variable rate as well, which is based on prime plus a margin. The program also has an Equity Protection(SM) feature which allows the borrowers to protect from 10 to 50 percent of their homes value.
Prime Advantage is now available directly from BNY Mortgage throughout Connecticut, Massachusetts, New Jersey, and New York. Availability in additional states will follow in the coming weeks. In addition, Prime Advantage is available in California from select BNY Mortgage wholesale partners and will be available throughout the country in the coming weeks. Once I receive more information on the details of the product I will be sure to post them.
If you would like to read a copy of the press release click the link below.