HomeSafe Second puts your business in position to help a growing demographic of customers looking to address rising costs and higher interest debt without impacting the favorable rates of their current mortgage.
| Credit Card | Personal Loan | HELOC | HomeSafe Second | |
|---|---|---|---|---|
| Credit Type | Revolving | Close-ended | Open-ended | Close-ended |
| Interest Rate Type | Variable | Fixed | Variable | Fixed |
| Interest Rate* | 19.58% | 13.5-15.5% | 7.6% | 9.99%** |
| Funds Disbursement | Revolving | Lump Sum | Line of Credit | Lump Sum |
| Monthly Payment | Yes | Yes | Yes | No |
| Missed Payments Affect Credit | Yes | Yes | Yes | No |
| Closing Costs | No | Yes | Yes | Yes |
| Collateral | Unsecured | Unsecured | Secured by home | Secured by Home |
*National interest rate averages as of January 2023. Source: www.bankrate.com
**Rate effective as of 7/3/2024. Available on fixed rate, second-lien, non-FHA, HomeSafe Second reverse product only. The HomeSafe Second reverse mortgage loan allows borrower to keep a first lien, forward mortgage in place and take out a second lien reverse mortgage for additional funds. APR may vary based on specific loan terms. Availability subject to loan approval, individual financial analysis, and other factors. Amount of loan proceeds available depends on age, home value, rate and first lien mortgage balance.
An origination fee of $3995.00 is assessed by FAR upon the consummation of loan. Settlement closing costs are also required with borrower’s loan, including items such as an appraisal report, credit report fee, title insurance premium, and title fees. Fees and amounts may vary by state. Term of loan based on borrower life expectancy. Repayment due in a single payment upon maturity (when the last borrower passes away, borrower sells the home or no longer occupies the home as principal residence) or the borrower defaults. Borrower may be directly responsible for the payment of real estate taxes and hazard insurance on home. Additional terms and conditions apply. Advertised rates subject to change without notice.
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*The borrower must meet all loan obligations, including meeting all loan obligations under the first lien mortgage, living in the property as the principal residence and paying property charges, including property taxes, fees, hazard insurance. The borrower must maintain the home. If the homeowner does not meet these loan obligations, then the loan will need to be repaid.
In addition to interest, reverse mortgage costs can include a property appraisal fee, origination fee, closing costs, servicing fee, and a modest charge for independent counseling. Most of these upfront costs can be rolled into the loan itself, and while closing costs vary based on the type and size of the loan, they’re similar to those for any traditional mortgage.
