New ‘jumbo’ reverse mortgage debuts with no fees

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The nation's largest reverse mortgage lender recently rolled out the latest wrinkle in enabling seniors to tap the equity in high value homes – a "jumbo" reverse with no upfront fees. Irvine, Calif.-based Financial Freedom, recently purchased six weeks ago by IndyMac Bank from Lehman Brothers FSB, now is offering a "Simply Zero Cash Account" reverse mortgage in an effort to reduce the expensive perception of reverse loans. Simply Zero features no origination fee and no closing costs. "With Simply Zero, we have even eliminated origination fees and third-party costs to provide borrowers with a loan that answers their needs and which removes a key barrier – the perception that these loans are expensive," said Jim Mahoney, Financial Freedom's chief executive officer. The interest rate on the Simply Zero is the six-month LIBOR Index plus five percentage points. The rate has been hovering between 6.5 percent and 7 percent recently. The only significant difference from the oth...