Tom MacDonald - Reverse Mortgage Consultant






       Reverse Mortgage Consultant

      Tom MacDonald


       707-265-6385      800-801-5727   Is This The Best Reverse Mortgage Website in the U.S.*

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Reverse Mortgage Consultant- Tom MacDonald BBB Business Review

Interest Only Payments

My client, a 64 year old single woman who owns several investment properties plus her primary residence was feeling the pinch of declining property valuations and rental income impacted by the current economic conditions. 

She contacted me to discuss her options with the Reverse Mortgage as she did not want to take a chance that her ability to pay the mortgage on her primary residence might be a challenge if the declines in rental income continued.  We discussed her various options for Reverse Mortgage programs and she elected the HECM Standard offering an interest rate of 4.05%*. 

Her greatest concern was the rising debt offsetting retained equity over time.  As such we reviewed the Amortization Schedule which reflected that the on-going monthly interest + FHA Mortgage Insurance Premium charges would be approximately $435.00* per month.  She knows she can make that payment, and her plans are to treat her Reverse Mortgage as an 'interest only' loan to minimize the increasing loan balance.

The realization that she could make prepayments without penalty have greatly eased her mind that if she elects to sell her primary residence in a few years, that she will be able to realize a greater margin in retained equity.  Another satisfied client!

*This is an example that may not currently have the same criteria.  Results will vary based on borrower's age, current interest rates, home value and FHA maximum limits.  Ask me to quote a similar scenario for you or one of your clients.