Annually Adjusting LIBOR HECMs Update
Dear Licensed Partner,
Annually adjusting HECMs are back! Now, you can offer your senior borrowers a more secure option. The annually adjusting LIBOR HECM interest rate reduces volatility because the interest rate only changes once a year.
Some of the advantages of the annually adjusting LIBOR HECMs over monthly adjusting LIBOR HECMs are:
1. The annually adjusting LIBOR HECM offers the annual rate cap of 2% and a life cap of 5% over the initial start rate in comparison to the life cap of 10% over the initial start rate on the monthly adjusting LIBOR HECM.
2. The first interest rate change under the renewed Annual ARM product will occur 12 to 18 months after the closing date in comparison to the occurrence of first interest rate change of 1 to 6 months from the closing date on a monthly adjustable LIBOR HECM.
Sun West, with its licensed partners, takes pride in providing senior citizens with the increased flexibility needed to plan for retirement and financial security.
If you have any questions, please contact your Client Relations Manager at (855) OK-SUNWEST or (855) 657-8693.
Sun West Mortgage Company, Inc.
|This information is provided to licensed wholesale brokers only and may not be copied or distributed to customers or potential customers. All loans are subject to approval. Certain restrictions may apply. Listed pricing is a morning indication only. Program rates, prices, guidelines, fees, costs, terms and conditions are subject to change without notice.