Reverse Mortgage Funding LLC is a relatively new player in the reverse mortgage market, and it has become one of the top 10 lenders in the country, based on the number of reverse mortgage loans it issues. The lender is based in New York and licensed to operate in all states, Washington D.C. and Puerto Rico. RMF is one of the few reverse mortgage lenders endorsed by the American Banker's Association.
RMF offers a variety of reverse mortgages, including fixed-rate and adjustable-rate reverse mortgages, or Home Equity Conversion Mortgages (HECMs) as they are also called. The payout on these loans can be a lump sum, monthly installments or a line of credit. RMF also offers a HECM for the purchase of a new home for seniors wanting to move closer to family or looking for a home that better serves their current lifestyle.
In addition to standard reverse mortgages, the company offers a few types unique to RMF. The HECM MAX5 is similar to standard adjustable-rate HECMs, but the maximum interest rate is capped at 5 percent above what the rate was when the loan was given. This protects you from increasing interest rates. There is also an HECM Annual reverse mortgage with an interest rate that only increases once a year and will also never go up more than 5 percent over the initial rate.
Unlike One Reverse Mortgage or Liberty, RMF does not offer an online calculator or estimation tool. You can submit your information and a lender will follow up with you. After you submit your information, RMF will also send you educational materials about reverse mortgages and how they work.
The materials provide a good outline of the benefits and drawbacks of a reverse mortgage. Particularly helpful are the case studies that provide examples of the decision process and specific finances of people who chose reverse mortgages. These provide some real-world examples that are helpful in providing you with context for what is a complex financial decision.
Reverse Mortgage Funding is a relatively new provider of reverse mortgages, and the company, serves loans nationwide. RMF has some unique types of reverse mortgages which are worth investigating if you are concerned about interest rates rising in the future.