HECM Annual Adjustable Rate
The HECM Annual is a reverse mortgage which adjusts its interest rate once a year. It contains an “interval cap” which ensures the interest rate cannot increase more than a certain percentage annually, and a “lifetime cap” that guarantees your client’s rate will never go a certain percentage over the initial rate. With a HECM Annual, your client can choose from an array of disbursement options, such as receiving a lump sum, line of credit, tenure, term, or a combination of these.
HECM Monthly Adjustable Rate
The HECM Monthly is a reverse mortgage in which the interest rate fluctuates monthly. Like the Annual, it also features a “rate cap” to ensure the rate will never go beyond a certain percentage over the initial rate (depending on the loan options). Your clients will be able to utilize any of the disbursement options, which include: receiving a lump sum, line of credit, tenure, term, or a combination of these options.
HECM Fixed Rate
With a HECM Fixed, the interest rate is fixed for the life of the loan. However, this type of loan demands that the borrowers take all of their proceeds at their closing in a lump sum payment. Once you sign up with Nationwide Equities, your Relationship Support Manager can help you decide which loan type may be right for your client.