Reverse Mortgage Funding is introducing a new interest rate option called Equity Elite. It serves as another way RMF is diversifying and expanding the number of proprietary products and options available to its customers in the reverse mortgage market.
"In an effort to compete more directly with traditional avenues of financing, Equity Elite has introduced a new option with a 4.99% rate, a 200 basis point origination fee on principal limit, and the same principal limit factors (PLFs) as other Equity Elite options," according to Reverse Mortgage Daily.
"This way, RMF hopes to be more competitive with traditional mortgage rates while maintaining the unique features of a reverse mortgage, including not having to make mandatory monthly mortgage payments, non-recourse loan features, and the potential for a borrower to improve his or her cash flow."
The Equity Elite option is being used as a way to bring customers who are reluctant to move to a reverse mortgage due to the fact that their existing loan is set at a reasonable rate.
"Finding a reverse mortgage that offers a rate comparable to the conventional mortgage rate can go a long way toward making consumers feel more comfortable, since it is immediately more familiar due to its similarity to what they see in the forward market," according to the report.
To learn more about Reverse Mortgage Funding's Equity Elite proprietary reverse mortgage product, click on the image above.