PLF
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The percentage of the home's value that can be borrowed.
Recurring Costs
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May include:
1. Servicing Fees
2. Annual Mortgage Insurance
3. Interest
these types of costs are financed and become part of growing loan
balance
Fully Funded Life Expectancy Set Aside
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This type of set aside is required for borrowers whose credit/payment
history is less than stellar
the amount is based on the actual amount of property taxes &Hazard/flood
insurance each year with an adjustment factor
If not required, client can decide to have set-aside set up voluntarily
Life Estate
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Divides home ownership in two parts
1) right to sell and remainder interest (must agree and sign mortgage, even
if not eligible for HECM)
2)lifetime right to occupy property
, Pre-Counseling Packet Materials
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Includes the following:
1. Preparing for your counseling session
2. Loan comparisons
3. TALC
Expected Average Mortgage Interest Rate (Expected Rate)
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Rate used to calculate the loan amount available to the borrower(PL)
For calculating the PL, the expected rate for all HECMs has a floor of 5.0%
regardless of whether the loan has a fixed or adjustable rate. (any rates
below 5% will generate the same PL)
pg44
Living Trust
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a trust that takes effect while the grantor is still alive.
Grantor : Creates legal entity & Gives assets to it
Trustee : Manages the assets
Beneficiary : Has benefit from the assets
Give this one a try later!
The percentage of the home's value that can be borrowed.
Recurring Costs
,Give this one a try later!
May include:
1. Servicing Fees
2. Annual Mortgage Insurance
3. Interest
these types of costs are financed and become part of growing loan
balance
Fully Funded Life Expectancy Set Aside
Give this one a try later!
This type of set aside is required for borrowers whose credit/payment
history is less than stellar
the amount is based on the actual amount of property taxes &Hazard/flood
insurance each year with an adjustment factor
If not required, client can decide to have set-aside set up voluntarily
Life Estate
Give this one a try later!
Divides home ownership in two parts
1) right to sell and remainder interest (must agree and sign mortgage, even
if not eligible for HECM)
2)lifetime right to occupy property
, Pre-Counseling Packet Materials
Give this one a try later!
Includes the following:
1. Preparing for your counseling session
2. Loan comparisons
3. TALC
Expected Average Mortgage Interest Rate (Expected Rate)
Give this one a try later!
Rate used to calculate the loan amount available to the borrower(PL)
For calculating the PL, the expected rate for all HECMs has a floor of 5.0%
regardless of whether the loan has a fixed or adjustable rate. (any rates
below 5% will generate the same PL)
pg44
Living Trust
Give this one a try later!
a trust that takes effect while the grantor is still alive.
Grantor : Creates legal entity & Gives assets to it
Trustee : Manages the assets
Beneficiary : Has benefit from the assets
