Reverse Mortgages
If you are age 62 or older and own a home, you may qualify for a reverse mortgage on your primary residence.
A reverse mortgage turns the equity of your home into available cash. It works the opposite of a typical mortgage — the lender, in this case TFCU, will make payment(s) to you, rather than you making payments to us. You maintain ownership of your home, and no principal or interest payments are required for as long as you live in your home.
Repayment is made when you cease to occupy your home, whether you sell it, permanently move out or pass away. If the amount remaining on the mortgage at that time is less than your home's value, the difference is given to your estate. You will never owe more than the amount your home is worth and the lender cannot seek repayment from income, other assets or your heirs.
- In a single lump sum
- As a fixed monthly amount
- As a line of credit
- Or, any combination of the above
You have the option of receiving payments:
The amount you receive is different for everyone as it depends on your age, the value of your home and the current interest rate.
TFCU only collects a 1% origination fee. This means you can realize more equity out of your home and it costs you less to get it!
Counseling is required by a Hud Approved Counselor ($125 fee paid to Counseling Agency).
- Rate adjusts monthly
- Index: one year CMT + 1.25%
- Lifetime Cap: 10%
- Maximum loan amount: $700,000
- Origination fee: 1% of Principal loan limit
- Servicing fee: $25 per month
Products currently available:
Monthly Adjustable
- Rate adjusts annually
- Index: one year CMT + 2.75%
- Annual Cap: 2%, Lifetime Cap: 5%
- Maximum loan amount: $700,000
- Origination fee: 1% of Principal loan limit
- Servicing fee: $20 per month
Annual Adjustable
- Origination fee - 1.25% of maximum claim amount , minimum of $1,500, maximum of $6,000
- Mortgage Insurance Premium - 2% of maximum claim amount upfront; .50% of outstanding balance each month
- Index = 1 month London Interbank Offered Rate (Libor)
- Margin = 3.00%
- Lifetime Cap = 10% above initial rate
- $25 monthly servicing fee
Monthly adjustable HECM
- Origination fee - 1.25% of maximum claim amount , minimum of $1,500, maximum of $6,000
- Mortgage Insurance Premium - 2% of maximum claim amount upfront; .50% of outstanding balance each month
- Index = 1 year London Interbank Offered Rate (Libor)
- Margin = 3.25%
- Annual Cap - 2%
- Lifetime Cap = 5% above initial rate
- $20 monthly servicing fee
Annual adjustable HECM
- Origination fee - 1.25% of maximum claim amount , minimum of $1,500, maximum of $6,000
- Mortgage Insurance Premium - 2% of maximum claim amount upfront; .50% of outstanding balance each month
- TFCU posted 30 year conventional rate + 2%.
Fixed Rate HECM
Closing Costs: Estimated at 2-5% of the Principal Loan Limit. Closing cost % will vary depending on the age of the member and their home's value.
For more information or to schedule an appointment, please contact our Reverse Mortgage Department at 631-698-7000, extension 3675.
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