Types of reverse mortgages

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Heading into reverse
By Bankrate.com

Loan program	Fannie Mae Home Keeper	HUD/FHA Home Equity Conversion Mortgage	Financial Freedom Senior Funding Corp.
Availability	49 states (Texas excluded)	49 states (Texas excluded)	California, Arizona, Washington, Colorado, Oregon
Loan limits	Currently $240,000 in continental United States	Varies by county; ranges from $115,200 to $208,800 in the continental United States	80% of a home's value, up to a maximum of $1 million
Counseling required?	Yes	Yes	No
Upfront costs	Origination fee of $1,800 or 2% of the adjusted property value 1 point (1% of property value) Appraisal, inspection, other costs	No cap on origination fee; averages $1,800 Mortgage insurance premium of 2% of maximum claim amount Property appraisal, credit history, other costs	Origination fee of 2% of home value, with a minimum of $1,700 and maximum of $10,000
Service charge	$15-$30/month	$20-$30/month	N/A
Borrowers' choices for payment	Line of credit Scheduled payments	Line of credit Scheduled payments Lump sum	Schduled payments Lump sum
Line of credit growth?	No. Full line of credit available at origination	Yes. Unsused portion of line grows over time	No. Line of credit not offered
Interest rate	Adjustable monthly, tied to 1-month secondary market CD index	Adjustable monthly or annually; tied to 1-year U.S. Treasury rate	Varies with borrower's life expectancy and the amount of home equity tapped

-- Posted: Aug. 12, 1999

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See Also

•	Shopping for a reverse mortgage
•	Reverse mortgages offer older homeowners a little-known way to tap their equity
•	Who really benefits from mortgage life insurance?
•	Mortgage glossary
•	Track prime rate/other leading rate indexes
•	More mortgage stories

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