Countrywide recently updated their Simple Equity product to give borrowers two margin options for their jumbo reverse mortgage. Back in April I posted on the details of the Simple Equity program which then only featured a margin of 3.50%. Now, the program also gives the borrowers the choice of the same product but with a margin of 2.10%. So why would anyone choose the 3.50% margin?
From the materials I saw it looks like choosing the 3.50% margin will give the borrower more access to their equity because the LTV limits are higher than 2.10% margin. Since the gross benefit available to the borrower will be a little lower with the 2.10% margin, this also results in a lower origination fee charged to the borrower. If you are looking for the rest of the details on the product check out my first post on the Simple Equity program from April.
Have a great weekend!
Technorati tags: Reverse Mortgage, Countrywide, Simple Equity, Reverse Mortgage News, Jumbo Reverse Mortgage, Mortgage
