Silverboat - Reverse Mortgage Loans

Creating your own account allows you to store data, create a “crew list” to email data to others and if desired, to arrange a “crew meeting” over the internet and phone.

Currently, more than ninety (90%) percent of Reverse Mortgages today are based on the Treasury Bill Index. Although historical results are not a predictor of future rate movements, review each index to ascertain stability. Faster adjusting indexes are a benefit as rates go down, but adjust upward more quickly when rates increase. Look for a low margin and caps as they relate to adjustment periods and the maximum cash available. More information is available under Types of Reverse Mortgage loans and Comparison of Reverse Mortgage Loans. Talk with a Silverboat representative for more details on loan options.

Usually a line of credit line, in second lien position, based on the Equity in your home.

	What’s a Reverse Mortgage?
	Who’s Eligibile?
	Uses of Reverse Mortgage Loans
	Top Reverse Mortgage Concerns
	Saying No to a Reverse Mortgage
	Adult Children Involvement
	Loan Approval Process
	Annualized Growth Rate
	Rates, Margins, Adjustments & Caps
	Loan Payout Options
	Types of Reverse Mortgages
	Comparisons
	Loan Closing Costs
	FAQ
	How Much Can You Borrow?

Education

Interest Rates, Margins, Adjustments and Caps

Similar to a home equity loan, a borrower can choose a line of credit that allows the choice of when to withdraw money and how much to use. Interest is charged only on the amount used. Interest rates are primarily based on the one year Treasury Bill index, although other options or indices apply. Added to the Treasury Bill index is a margin, which at times, is rounded to the nearest 1/8th percent. This becomes the actual interest rate. Interest rate adjustment periods vary as do interest rate caps.

One Year Treasury Bill (T-Bill): Treasury securities are government bonds issued by the United States Department of Treasury. The index is the weekly average yield on the United States Treasury Securities adjusted to a constant maturity of one year.

One Month CD Index: Average secondary market certificate of deposit rates for one month.

Six Month LIBOR: LIBOR stands for the London Inter-Bank Offer Rate.

Click here to look and compare the historical performance of these indices.

Margin: An amount added to the basic index, and then generally rounded up to the nearest 1/8th of a percent. The end result is the actual interest rate charged.

Caps on Rate Changes: Limits the movement of interest rate, either up or down, for the specified period such as one month, six months, or yearly. There is usually a "floor" or minimum rate identified.

Lifetime Rate Caps: The maximum an interest rate can increase over the life of a loan.

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