Referred to as a reverse mortgage specialist, Financial Freedom has been instrumental in developing the concept of reverse mortgage during the 1980s. Financial Freedom deals only in reverse mortgage products and have excelled in this field. It has a wide base of clientele list.
Some of the important reverse mortgage products of offered by Financial Freedom includes the following:
One of the widely availed Financial Freedom reverse mortgage products include the HECM or Home Equity Conversion Mortgage Reverse Mortgages. The other very popular reverse mortgage product availed by some includes Financial Freedom Cash Account Advantage Plan.
(I) Home Equity Conversion Mortgage(HECM) Reverse Mortgage:
The Federal Government insures the HECM. It has been observed that majority of the reverse mortgage applications include HECM reverse mortgages. Depending on the applicant's age, valuation of home and the location of home, the FHA or the Federal Housing Administration decide as to how much money may be actually offered to an individual. Accordingly, the closing costs are also decided. Financial Freedom offers HECM products, at a fixed rate of interest as well as flexible or variable rate of interest. Under the new HECM norms, the reverse mortgage loan may have a fixed rate of interest. In the event the valuation of a house (against, which the loan is taken) is below USD$400,000, greater loan advances may be availed under the HECM product as compared to the other reverse mortgage products.
(II) Cash Account Advantage Plan by Financial Freedom:
Cash Account Advantage Plan launched by Financial Freedom may be referred to as a “jumbo reverse mortgage product”. This plan is meant primarily for the borrowers whose valuation of the house is quite high. This product was first launched in the year 2000. Since then it has been a very popular reverse mortgage plan. With the help of this plan, one may avail maximum benefits.
Features of this product:
The rate of interest on this product is adjusted after every 6 months (“semiannually”).
The lifetime rate of interest is capped.
Every month a servicing fee is imposed on the account.
Maturation fee is not imposed.
Absence of equity (appreciation) sharing.
In this product range, Equity Choice Feature is popular, which allows a borrower to save a part of the home equity for the successors or heir(s).