Last week Financial Freedom announced the release of their new HECM Fixed product. Over the weekend I received some of the details on the program. I was thinking the product would be the standard HECM product that has been released by other lenders, but I noticed one major difference. The HECM fixed product gives borrowers two options:
- HECM Fixed which requires a 100% upfront draw, close-ended structure.
- HECM Fixed which gives the borrower a lower upfront draw, term, tenure, or a combination line of credit with term or tenure payment options. This option will have a higher rate than the 100% upfront draw option.
This is the first fixed HECM that I’m aware of which doesn’t require 100% upfront draw at closing. No word on how much higher of a rate the term, tenure, or credit line will be, but it’s always a nice option to offer your borrower.