Reverse Mortgage

For homeowners 62 years or older, a reverse mortgage provides one of the safest ways to tap into your home equity to pay for what you want or need-without giving up your home!  Our reverse mortgage program,  helps seniors enjoy the benefits of this important financial tool.  You can tailor your reverse mortgage to meet your individual financial needs, such as regular monthly income, a line of credit, a lump sum payment, or a combination of these options.

With a Reverse Mortgage, you will have all the benefits of maintaining your home ownership.  In contrast to other types of loans, no repayment is required as long as you remain in your home.

If you have further questions, call a Centurymark Home Loans reverse mortgage Loan Officer and get more information at  512-617-1967.

Home Equity Conversion Mortgage (HECM)

Frequently Asked Questions

Q. Since federally-insured HECM loans are regulated by the U.S. government, are all HECM loans the same?
A. Yes and no. All HECM lenders must follow HUD rules and many of the loan costs will be the same no matter which reverse mortgage lender you choose.

Q. What are the eligibility requirements for a HECM loan?
A. You, and any other current owners of your home, must be aged 62 or older. The home must be your primary residence. It may be either a single-family residence in a 1- to 4-unit dwelling, a condominium, or part of a planned unit development (PUD). Though some manufactured housing is eligible, most cooperatives and most mobile homes are not. The home must be at least one year old and meet HUD's minimum property standards*. Finally, you must agree to discuss the program with a counselor from a HUD-approved counseling agency.

* Note: If the house does not satisfy HUD's requirements, you may use the HECM loan to pay for repairs that may be required to meet HUD standards.

Q. Does the location of our home also affect the size of a HECM loan?
A. Yes. The size of a HECM loan depends on the maximum lending limit, which is determined by the government agency, the Fair Housing Administration (FHA). It varies by county and is adjusted annually. For 2007, the FHA loan limit varies from a low of $200,160 (for rural areas) to a high of $362,790 (for high-cost metropolitan areas).

Q. What are the key benefits of HECM Advantage over traditional HECM?
A. Compared to a traditional HECM, Centurymark Home Loans's HECM Advantage offers greater benefits to seniors.

•         Competitive interest rate
•         Access to more cash
•         Greater monthly income
•         Higher credit line growth 

Above all, HECM Advantage still retains all of the consumer safeguards and features that have helped make HECM the most popular reverse mortgage product.

Q. Are there any advantages by taking my HECM loan as a line of credit?
A. Yes. That's because a HECM line of credit continues to grow over time, increasing the amount of cash available to you until you withdraw all of it. That is possible because the remaining balance in your line of credit grows by the same total rate that is charged on your loan balance.

Consider this example. Say you have a HECM line of credit of $150,000 and you withdraw $25,000. The remaining line of credit would be $125,000. If your next withdrawal is a year later you would have more than $125,000 available to you. Here's how it works to your advantage: if the total loan rate is, for instance, 6%, your available credit line would be 6% higher than it was a year earlier. Instead of having $125,000 available you would have $132,500 in your line of credit (6% of $125,000 = $7,500). In this example, you would have an extra $7,500 available to you in year two of your reverse mortgage. A nice added bonus.

Q. Are HECM loans available throughout the U.S.?
A. HECM loans are available in all 50 states, including the District of Columbia.

Fannie Mae Home Keeper© Reverse Mortgage

Frequently Asked Questions

Q. What types of homes are eligible for a Fannie Mae Home Keeper© reverse mortgage?
A. Home types eligible for Home Keeper reverse mortgages include single-family homes, condominiums, and units in qualified planned unit developments.

Q. How do Home Keeper reverse mortgage loan limits compare to those of HECM loans?
A. Home Keeper reverse mortgages can be larger than HECMs because Fannie Mae's maximum lending limit - $417,000 for 2007 - is larger than the highest locally applied FHA mortgage limit.

Q. In what ways may I receive money from a Home Keeper reverse mortgage?
A. You may choose to receive money from a Home Keeper reverse mortgage in the same way you may receive funds from a HECM loan: as fixed monthly payments for life (i.e., for as long as the borrower occupies the home as his/her principal residence; as a line of credit with no growth; or a combination of monthly payments and line of credit).

Q. How are the interest rates computed for a Home Keeper reverse mortgage?
A. The HECM rates are based on the variable CD (Certificate of Deposit) interest rate plus margin and is adjusted monthly.