I came across an article from Business Week titled “Pumping Up Your Reverse Mortgage” that talked about how one homeowner utilized her $1.2 million dollar home. In this situation the homeowner used Financial Freedom to help her with her reverse mortgage. Financial Freedom has a program named the Financial Freedom Cash Account Advantage Plan (TM) which is the nations most popular jumbo reverse mortgage product and over the past couple of years has seen little to no competition. All of that is about to change because of a few new jumbo reverse mortgage options that have or will be entering the market it the next few months.
Recently Seattle Mortgage released their new program which is called the Independence Plan (TM) in Washington, Oregon, and California. The program is expected to be released nationwide in the first quarter of 2007. I haven’t been able to find to much information regarding this product so if anyone out there has any I would love to take a look.
According to the article from Business Week, another new program that will really give Financial Freedom’s cash account a run for their money is a new program that will be rolled out from Bank of NY Mortgage Company in February. This will be the first jumbo reverse mortgage product that will have a fixed rate. Currently all the other jumbo reverse mortgage products offered are for adjustable rate products. I just recently wrote about Bank of New York because they released a new product named the HECM 100 (TM) which has a margin of 1.00 instead of the industry standard 1.50.
It will be interesting to see if any of the big lenders that will be entering the reverse mortgage market will come out with a jumbo product initially or not… who knows? But one thing we do know is that Financial Freedom continues to hold the title of the “Nations Largest Reverse Mortgage Lender” at the moment, but within the next year they will have a lot more competition looking to take that title away.