Kosher Reverse Mortgage Home Page

Table 1

Prices of HECM Reverse Mortgages to a Borrower of 70 With a Home Worth $600,000 and Existing Mortgage Balances of Varying Amounts: Mainstream Versus Kosher Markets

Existing Mortgage Balance	Mainstream Market				Kosher Market
	FRM		ARM		FRM		ARM
	Interest Rate	Origination Fee	Interest Rate	Origination Fee	Interest Rate	Origination Fee	Interest Rate	Origination Fee
Zero	5.060%	$6,000	2.703%	$6,000	4.500%	-$40	2.578%	$2,500
$100,000	5.060%	$6,000	2.703%	$6,000	4.250%	-$1,018	2.735%	$0
$200,000	5.060%	$6,000	2.703%	$6,000	3.990%	$0	2.860%	-$6,053
$300,000	5.060%	$6,000	2.703%	$6,000	3.990%	$0	2.735%	-$6,036

Note: Kosher prices are the lowest of those obtained from participating lenders who deliver their prices daily to www.mtgprofessor.com. Mainstream prices are estimates of NRMLA, the trade association of reverse mortgage lenders, posted in its calculator at www.nrmlaonline.org.
Help Understanding Table 1
Here is an example from Table 1. The borrower of 70 with a home worth $600,000 and a mortgage balance of $200,000 can obtain a fixed-rate mortgage in the mainstream market at 5.060% with a $6,000 origination fee, or in the Kosher HECM Reverse Mortgage℠ market at 3.990% with a zero origination fee.

Relevant Readings:

Eliminating Dysfunction in the Reverse Mortgage Market

Table 2

Prices and Transaction Costs
[Borrower Age 70 With Home Worth $350,000 and Mortgage Balance of $175,000]

	Fixed Rate with Lowest Interest Rate	Fixed Rate with Lowest Origination Fee	Adjustable Rate with Lowest Interest Rate	Adjustable Rate with Lowest Origination Fee
Interest Rate	3.990%	4.990%	2.059%	3.059%
Origination Fee (%)	1.327%	-1.856%	-0.194%	-5.028%
Financed Settlement Costs	$13,460	$3,838	$9,180	$2,058
Origination Fee	$2,500	$-7,122	$-1,780	$-8,902
Mortgage Insurance	$8,750	$8,750	$8,750	$8,750
Other (Estimated)	$2,210	$2,210	$2,210	$2,210

Help Understanding Table 2
Here is an example from Table 2. The senior described can pay $13,460 in settlement costs to obtain a fixed rate HECM at 3.990%, or she can pay $3,838 in settlement costs at a rate of 4.990%.

Relevant Readings:

Pricing a Reverse Mortgage

Table 3

Available Draw Options
[Borrowers of Different Ages With Different Amounts of Homeowner Equity]

Borrower Age	Option 1: Cash Draw	Option 2: Monthly Payment			Option 3: Unused Credit Line
		Option 2: Monthly Payment			Available Within First 12 Months	Available in 10 Years
		Tenure	10 Years	5 Years	Available Within First 12 Months	No Rate Change	Maximum Rate
Property Value $100,000
62	$47,987	$256	$519	$909	$50,684	$82,912	$124,601
70	$55,185	$307	$576	$1,008	$57,401	$81,814	$196,620
78	$61,585	$394	$646	$1,131	$64,058	$91,302	$219,423
86	$68,485	$571	$722	$1,263	$71,235	$101,531	$244,007
Property Value $200,000
62	$99,420	$534	$1,082	$1,893	$105,008	$171,778	$258,148
70	$111,818	$637	$1,196	$2,092	$116,308	$165,773	$398,398
78	$124,618	$840	$1,371	$2,392	$129,622	$184,750	$444,004
86	$138,418	$1,206	$1,522	$2,657	$143,976	$205,209	$493,172
Property Value $300,000
62	$150,852	$837	$1,681	$2,933	$159,331	$260,643	$391,695
70	$168,450	$994	$1,853	$3,233	$175,215	$249,733	$600,176
78	$187,650	$1,265	$2,064	$3,601	$195,186	$278,198	$668,584
86	$208,350	$1,816	$2,291	$3,999	$216,718	$308,886	$742,337
Property Value $400,000
62	$202,285	$1,119	$2,247	$3,921	$213,655	$349,508	$525,243
70	$225,083	$1,329	$2,475	$4,320	$234,122	$333,693	$801,954
78	$250,683	$1,689	$2,757	$4,811	$260,750	$371,646	$893,165
86	$278,283	$2,426	$3,061	$5,341	$289,459	$412,563	$991,502

Note: Borrowers can also draw smaller amounts of multiple options.

Help Understanding Table 3

Relevant Readings:

Which HECM Options Meet Your Needs?

Table 4

Capacity to Repay Existing Mortgage: The Largest Existing Mortgage Balance That Can Be Paid Off
[Borrowers of Different Ages With Different Amounts of Homeowner Equity]

Property Value	Age of Borrower
Property Value	62	67	72	77	82	87
$100,000	$48,511	$51,743	$55,278	$59,318	$63,661	$68,206
$200,000	$100,564	$107,156	$114,366	$122,606	$131,464	$140,734
$300,000	$153,140	$163,124	$174,044	$186,524	$201,962	$216,137
$400,000	$206,765	$220,205	$234,905	$251,705	$269,765	$288,665

Note: Borrowers with smaller balances can draw funds in any of the ways shown in Table 3. Borrowers with larger balances must put up cash to supplement the HECM.

Help Understanding Table 4

Relevant Readings:

Retiring With a Mortgage Balance: What to Do?

Transitioning From a Standard Mortgage to a Reverse Mortgage

Table 5

Monthly Payment Available
[Borrowers of Different Ages With Different Amounts of Homeowner Equity]

Borrower Age	Payment Period: Tenure in House			Payments Over Shorter Periods
Borrower Age	Monthly Payment	Debt in 5 Years	Debt in 10 Years	3 Years	5 Years	10 Years
Property Value $100,000
62	$256	$24,237	$50,180	$1,433	$909	$519
70	$307	$27,762	$58,416	$1,590	$1,008	$576
78	$394	$33,817	$72,561	$1,783	$1,131	$646
86	$571	$46,123	$101,312	$1,991	$1,263	$722
Property Value $200,000
62	$534	$44,792	$96,932	$2,985	$1,893	$1,082
70	$637	$51,962	$113,683	$3,299	$2,092	$1,196
78	$840	$63,039	$143,335	$3,767	$2,392	$1,371
86	$1,206	$88,626	$203,323	$4,184	$2,657	$1,522
Property Value $300,000
62	$837	$64,141	$144,640	$4,620	$2,933	$1,681
70	$994	$75,092	$170,316	$5,092	$3,233	$1,853
78	$1,265	$93,947	$214,521	$5,672	$3,601	$2,064
86	$1,816	$132,426	$304,738	$6,298	$3,999	$2,291
Property Value $400,000
62	$1,119	$85,070	$192,434	$6,175	$3,921	$2,247
70	$1,329	$99,686	$226,701	$6,804	$4,320	$2,475
78	$1,689	$124,854	$285,709	$7,578	$4,811	$2,757
86	$2,426	$176,226	$406,152	$8,412	$5,341	$3,061

Note: While the payments shown are the largest available, borrowers are not locked in. They can switch to a credit line at any time.

Help Understanding Table 5

Relevant Readings:

Delay Taking Social Security With a HECM Term-Payment

Table 6

Available Cash Draw For Home Purchase
[Borrowers of Different Ages With Different Amounts of Homeowner Equity]

Borrower Age	HECM Reverse Mortgage Financing			Cash Required From Other Sources
Borrower Age	Amount Available for Purchase	HECM Debt at Closing	HECM Debt in 10 Years	Cash Required From Other Sources
Property Value $100,000
62	$47,985	$52,572	$92,571	$52,015
70	$53,185	$57,789	$101,758	$46,815
78	$59,585	$64,210	$113,064	$40,415
86	$66,485	$71,133	$125,254	$33,515
Property Value $200,000
62	$97,418	$105,144	$185,143	$102,583
70	$107,818	$115,579	$203,516	$92,183
78	$120,618	$128,421	$226,129	$79,383
86	$134,418	$142,266	$250,508	$65,583
Property Value $300,000
62	$146,850	$157,717	$277,714	$153,150
70	$162,450	$173,368	$305,274	$137,550
78	$181,650	$192,631	$339,193	$118,350
86	$202,350	$213,399	$375,762	$97,650
Property Value $400,000
62	$196,283	$210,289	$370,286	$203,718
70	$217,083	$231,157	$407,032	$182,918
78	$242,683	$256,841	$452,257	$157,318
86	$270,283	$284,532	$501,016	$129,718

Note: Borrowers may elect to take less than the maximum in order to reserve borrowing power for future use.

Help Understanding Table 6

Relevant Readings:

Four Ways to Purchase a House With a Reverse Mortgage

Table 7

Available Credit Line Now and In the Future
[Borrowers of Different Ages With Different Amounts of Homeowner Equity]

Borrower Age	Unused Credit Line				Loan Balance At Closing
Borrower Age	At Closing	After 12 Months	After 10 Years at Current Interest Rate	After 10 Years at Maximum Interest Rate	Loan Balance At Closing
Property Value $100,000
62	$27,027	$47,987	$86,858	$124,601	$4,433
70	$32,145	$55,185	$97,492	$196,620	$2,423
78	$35,985	$61,585	$108,798	$219,423	$2,423
86	$40,125	$68,485	$120,988	$244,007	$2,423
Property Value $200,000
62	$57,500	$99,420	$179,952	$258,148	$5,405
70	$65,738	$111,818	$197,540	$398,398	$3,394
78	$73,418	$124,618	$220,153	$444,004	$3,394
86	$81,698	$138,418	$244,533	$493,172	$3,394
Property Value $300,000
62	$87,972	$150,852	$273,046	$391,695	$6,377
70	$99,330	$168,450	$297,589	$600,176	$4,364
78	$110,850	$187,650	$331,508	$668,584	$4,364
86	$123,270	$208,350	$368,078	$742,337	$4,364
Property Value $400,000
62	$118,445	$202,285	$366,140	$525,243	$7,349
70	$132,923	$225,083	$397,638	$801,954	$5,335
78	$148,283	$250,683	$442,863	$893,165	$5,335
86	$164,843	$278,283	$491,622	$991,502	$5,335

Note: Current interest rate is 4.231%. Maximum interest rate is 14.231%.

Help Understanding Table 7

Relevant Readings:

To Avoid Outliving Your Money, Take a HECM Reverse Mortgage Before Interest Rates Rise

Senior Homeowners Can Reduce the Risk of Outliving Their Money But They Need to Unlearn a Shopping Rule

Table 8

Homeowner of 62 with $200,000 of Home Equity Who Wants an Income Source at Age 82

HECM is Taken Now
Credit Line of $101,138 After One Year is Used to Buy a Longevity Annuity Payable in 19 Years	Annuity is: $2,812 (for males), $2,421 (for females)

	Interest Rate During 20-Year Period
HECM Credit Line Drawn Now Sits Unused For 20 Years	Current (5.16%)	6%	7%	8%	9%
Credit Line After 20 Years	$345,419	$408,220	$497,962	$607,332	$740,602
Tenure Payment in 20 Years	$2,685	$3,369	$4,402	$5,738	$7,461
HECM is Taken in 20 Years
HECM With Tenure Payment Drawn in 20 Years	Current (5.16%)	6%	7%	8%	9%
House Appreciates 4%	$2,193	$1,967	$1,797	$1,639	$1,465
House Apprciates 8%	$3,145	$2,823	$2,582	$2,358	$2,110
House Value Constant	$982	$878	$799	$725	$644

Note: Calculations assume an, origination fee of $3,000, other closing costs of $1425, and a ½% upfront mortgage insurance policy.

Chart Version of Table

Note: Kosher HECM reverse mortgages are those that have been evaluated uising the professor s calculator, based on prices available from loan providers who deliver their prices to www.mtgprofessor.com. The prices shown are the lowest of those reported, and the draw amounts are therefore the largest available.