Reverse Mortgages :: Cash Account

Reverse Mortgage Cash Account (Financial Freedom) is a relatively new loan program. The Cash Account is a Reverse Mortgage and you must be 62 years of age or older. It is similar in some ways to the FHA HECM or the Fannie Mae Homekeeper loans, but there are some distinct differences.

The Cash Account reverse mortgage has virtually no loan limit. Due to this feature this type of loan works better for homes with higher values. Like all reverse mortgages the Cash Account offers unrestricted use of tax free proceeds and the borrower makes no monthly mortgage payments.

There are no income requirements and very liberal credit qualifications. So this type of loan, like the other reverse mortgages is very easy to qualify for. You also continue to own and live in your home which is also true of the other reverse mortgages.

Funds are available to you in monthly payments, or cash at closing, or a line of credit. It is the only reverse mortgage available as a Zero Point loan or Zero Closing Cost loan. This feature is unique to the Cash Account programs. If you are looking for a no cost reverse mortgage, this is it. Another nice feature to this loan is that there is no mortgage insurance.

This loan is not repaid until:

• The Borrower(s) Permanently Leave the Home
• Sale of the Home
• Death of the Homeowner(s)

The amount you or your heirs owe when the loan is due can never exceed the market value of the home, no matter how much the outstanding loan balance is. Homeowners live in their home and remain on title for the rest of their lives without a house payment. This reverse mortgage can be refinanced at any time without a pre-payment penalty.

Reverse mortgages are offered as an adjustable rate. The lifetime cap is 6% over the beginning expected interest rate. It can adjust every 6 months and is based upon the 6-month LIBOR index. The margin is 5%. Closing costs can be financed into the loan.

This is an excellent way for senior homeowners to convert non-usable home equity into cash. After all, you have worked hard to pay for your home, now let your home work for you. Your home does not have to paid off in order to qualify for the Cash Account reverse mortgage.

Types of Reverse Mortgages

Fannie Mae Homekeeper reverse mortgage :: FHA HECM :: Reverse Mortgage FAQ