Christee Reverse Mortgage Quick Start

A Home Equity Conversion Mortgage (HECM), also called a Reverse Mortgage, is a viable buying option for many seniors 62 years or older. This unique module provides data to evaluate a HECM Purchase Option.

The Reverse Mortgage module has 2 distinct functionalities:

1. To Project a Price Home with a HECM loan or

2. Show Options to Purchase a Specific Home with a HECM loan

This program DOES NOT calculate refinancing options for a HECM (Reverse Mortgage) loan.

A HECM is a ‘Reverse’ mortgage that does not require a monthly payment.

There is potential for negative amortization (interest is added to the mortgage balance each month).

The software provides quick and detailed answers to the following questions:

1. What price home can be purchased with a HECM loan based upon age and interest rate?

2. What loan amount can be obtained for a specific property using a HECM loan ?

3. How much down payment will be required?

4. How much total cash will be required?

5. How much home can be purchased with a HECM purchase using a specific amount of cash?

6. What are the estimated closing costs?

7. What are the estimated annual property taxes?

There are Only 5 Required Fields for the Reverse Mortgage module.

  • 1. State. Select the State.
  • 2. County or City. Select the County or City.

    Tip. Closing cost are based upon the area selected.

  • 3. Enter Zip Code.
  • 4. Enter Interest Rate. You will see suggested interest rates. Click the pencil inside the box to change the interest rate for analysis.

    Tip. A rate of three and one eighth is entered as 3.125.

  • 5. Age of Youngest Borrower. Enter the age of the youngest borrower. Minimum age for primary borrower is 62. Spouse may be younger than 62. Christee will accept age of youngest borrower as low as 40 years. However, one borrower must be at least 62 years young.

    Tip. Husband is 70 and wife is 61. Enter 61.

11 Optional Inputs for a HECM Purchase. NOT required for Christee results.

  • 1. Sales Price. If you wish to explore purchasing a specific property, then enter the Sales Price here.

    Tip. If the sales price is higher than the maximum claim amount, Christee will base the calculations on the maximum claim amount, thus resulting in additional down payment.

    Tip. The maximum claim amount (currently $970,800) is the maximum sales price which will result in the minimum down payment. For example. A sales price entered of $971,000 the calculations for loan amount would be based on $970,800 which result in additional down payment.

  • 2. Cash. Enter the amount of total cash the borrower has available to purchase a home utilizing a HECM mortgage. Based upon cash entered, Christee will calculate potential purchase price and loan amount.

    Tip. HECM loans do NOT allow Sellers to pay part of the buyer’s closing cost (seller concessions).

  • 3. Property Taxes. If you have a specific property in mind, you may want to enter the actual property taxes for that property.

    Tip. If you do not enter property taxes, Christee will estimate the property taxes based upon the area selected.

  • 4. Close Date. You may enter an anticipated date for closing.

    Tip. Closing cost that are date sensitive, such as property tax adjustments, will be based on this date. Otherwise, adjustments will be based upon preparation date, plus one month.

  • 5. Down Payment Percentage. Enter the maximum down payment percent you would like to utilize for a reverse mortgage. The minimum down payment is based upon several factors including the age of the borrower. If the down payment entered is less than minimum required then Christee will make the adjustment.

    Tip. In the HECM world, LTV (Loan-to-value) is not used. Instead, principal limit factor is used. In an effort to make Christee reports easy to understand, we have used terms that are more familiar such as LTV.

  • 6. Mortgage Amount. Enter the maximum HECM loan the borrower desires. If the amount entered is less than maximum mortgage amount available, then Christee will use the maximum loan amount as entered.
  • 7. Age for HECM Balance. You may enter any an age up to 100 years old. If this field is blank, Christee will compute the estimated mortgage balance for a 10-year period.

    Tip. If the borrower is 75-years old and you would like to know the balance at age 87. Enter 87.

  • 8. Include Origination Fee. If you enter ‘Yes’, then Christee will calculate the an allowable Lender Origination fee on a HECM loan.

    Tip. The origination formula for a HECM loan is: 2% of the sales price up to $200,000 or $2,500 whichever is greater. Plus 1% of the sales price above $200,000 with a maximum origination fee of $6,000.

  • 9. Name. Optional Input.
  • 10. Phone. Enter your phone number to have a Christee Certified Agent contact you.
  • 11. Email Address. By entering a valid email address, you have the option to have the PDF report emailed to yourself or another person.

    Tip. If this field is blank, then then you may download the PDF report.

    Tip. Make sure you hit the ‘submit’ button after entering an email address.

We hope you enjoy your AskChristee experience!

Results will be displayed in your browser. Additional detail is available in the PDF file. Please review results with a recommended AskChristee Agent and Lender.

See the Resources tab for more Information. Visit Video tab for demonstration and greater insight.