Financial Freedom Adds HECM Options

Financial Freedom, Irvine, Calif., has announced the addition of two new Home Equity Conversion Mortgage LIBOR margin options to its line of reverse mortgage products. The interest rate for the new products, HECM Monthly LIBOR 75 and HECM Monthly LIBOR 85, is based on the one-month London interbank offered rate index plus the margin. (Financial Freedom launched the industry's first LIBOR-indexed HECM in October 2007.) The new options will enable borrowers "to realize a somewhat higher cash benefit, a larger monthly payment and, in some cases, a reduced origination fee at an interest cost that is slightly higher than the HECM Monthly LIBOR 65, but, based on historical index values, is lower than the industry-dominant [constant maturity Treasury]-based HECM product," said Michelle Minier, chief executive officer of Financial Freedom. The company, a subsidiary of IndyMac Bank FSB, can be found online at http://www.financialfreedom.com.