Introduction to North Dakota Reverse Mortgage Loans

There are so many question that surround a reverse mortgage in ND. But one of the biggest is How do I get paid. Even though there is a lot of gray areas, The amount a person can borrower depends on a number of factors. These factors including the three things:

  1. The borrowers age
  2. Current interest rates
  3. The value of the property

In the case of the HECM program (Home Equity Conversion Mortgage), the FHA loan limit will be leaned on for calculating. This formula is not easy to get your head around but it is based on 150% of the Freddie Mac lending limit.

Find out how a reverse mortgage loan can be part of a comfortable retirement. Click here for free information.

The Payout Options for North Dakota Reverse Mortgages

The home owner has several options in the way a reverse mortgage pays out. However, in most cases the fixed rate option only allows for a lump sum payment. The HECM product is very popular, It almost feels like the home owner is winning lottery. I have even heard of couples getting it in cash if only to hold it for a few minutes but this is ill advised. Below are some payout options for the HECM program:

Tenure: Monthly payments as long as a borrower or borrowers lives in the home as their primary residence.

Modified Tenure: Allows for a combination of scheduled monthly payments and the ability to access funds from a pre-established line of credit.

Term: Consistent monthly payouts for a predetermined number of months.

Modified Term: Scheduled monthly payouts for a given number of months, and the ability to access funds from a pre-established line of credit.

Line of Credit: Flexibility of being able to draw on an open line of credit at will until the home equity is depleted. The amount of money that remains in a line of credit gains equity every month by what is defined as a growth rate. The growth rate works similar to earning interest on a CD. The difference is the growth rate ads only to the amount you can draw against.

It also bears mentioning that a home owner needs to keep their family in the loop of the entire North Dakota reverse mortgage process. This is especially true to any heirs that a reverse mortgage might affect. With all the misinformation out there on reverse mortgages it may take some time and patience on both the home owner and the heir to explain the changes that may occur in event of the home owners needing to leave the home permanently. There are options the heir needs to be made aware of. In most cases, the heir can exercise an equity buy out and retain possession of the property. This becomes crucially important if, for instance the property has been in the family for generations.

Readers need to understand that the reverse mortgage industry is fluid and constantly changing. Some of the information contained on this article may not be current. Please ask a licensed ND reverse mortgage lender for up-to-date guidelines.

Find out how a reverse mortgage loan can be part of a comfortable retirement. Click here for free information.

North Dakota Reverse Mortgage Companies

Lender Loans Total Principal Limit
WELLS FARGO 326 39,107,837
AMERICAN ADVISORS GROUP 134 26,770,100
ONE REVERSE MORTGAGE LLC 58 10,066,800
FINANCIAL FREEDOM SENIOR FUNDING CORP 42 4,287,000
HOMEOWNERS FINANCIAL GROUP USALLC. 31 6,153,900
LEADER ONE FINANCIAL CORPORATION 24 3,806,000
NORTHWESTERN BANK N.A. 19 4,776,100
LIBERTY HOME EQUITY SOLUTIONS INC 15 2,077,000
METLIFE BANK NATIONAL ASSOCIATION 11 1,508,700
REVERSE MORTGAGE FUNDING LLC 10 2,213,000
GATE CITY BANK 9 1,030,900
LIVE WELL FINANCIAL INC 8 1,422,000
THE PRIVATE BANK & TRUST COMPANY 7 1,369,000
REVERSE MORTGAGE SOLUTIONS INC 6 1,074,100
PROFICIO MORTGAGE VENTURES LLC 6 1,411,000
BANK OF ENGLAND 5 1,208,900
FIRSTBANK 5 883,000
GENERATION MORTGAGE COMPANY 4 522,600
WORLD ALLIANCE FINANCIAL CORP. 4 561,500
FIRSTAR BANK NA 4 646,000

Since 2012

Lender Loans Total Principal Limit
AMERICAN ADVISORS GROUP 134 26,770,100
ONE REVERSE MORTGAGE LLC 42 7,809,300
HOMEOWNERS FINANCIAL GROUP USALLC. 31 6,153,900
NORTHWESTERN BANK N.A. 19 4,776,100
LEADER ONE FINANCIAL CORPORATION 17 2,785,000
LIBERTY HOME EQUITY SOLUTIONS INC 15 2,077,000
REVERSE MORTGAGE FUNDING LLC 10 2,213,000
LIVE WELL FINANCIAL INC 8 1,422,000
THE PRIVATE BANK & TRUST COMPANY 7 1,369,000
PROFICIO MORTGAGE VENTURES LLC 6 1,411,000

ND HECM Interest Rates

Current Rates

Date Fixed Rate Adjustable Rate
2019-01-01 NA 4.99%
2019-02-01 NA 5.51%
2019-03-01 NA 5.39%
2019-04-01 NA 5.12%
2019-07-01 NA 4.94%
2019-08-01 NA 4.53%
2019-09-01 NA 5.52%
2019-10-01 NA 5.12%
2019-11-01 NA 4.41%
2019-12-01 NA 4.55%
2020-01-01 NA 4.84%
2020-02-01 NA 3.80%
2020-03-01 NA 4.32%
2020-04-01 NA 4.38%
2020-05-01 NA 3.60%
2020-06-01 NA 3.11%
2020-08-01 NA 4.11%
2020-09-01 NA 2.77%
2020-12-01 NA 3.02%
2021-01-01 NA 3.54%
2021-02-01 NA 2.75%
2021-03-01 NA 2.44%
2021-04-01 NA 2.03%
2021-05-01 NA 2.75%
2021-06-01 NA 2.37%
2021-07-01 4.31% 1.63%
2021-08-01 NA 2.05%
2021-09-01 NA 2.29%
2021-10-01 NA 2.57%

Historic Rates

Date Fixed Rate Adjustable Rate
2016-01-01 5.06% 3.58%
2016-02-01 5.06% 3.69%
2016-03-01 NA 3.91%
2016-04-01 NA 3.94%
2016-05-01 NA 3.79%
2016-06-01 5.06% 4.10%
2016-07-01 NA 4.09%
2016-08-01 NA 4.26%
2016-10-01 NA 4.30%
2016-11-01 NA 4.38%
2016-12-01 NA 4.62%
2017-01-01 5.06% 4.57%
2017-02-01 NA 4.56%
2017-03-01 NA 4.71%
2017-04-01 NA 4.68%
2017-05-01 5.06% 4.37%
2017-06-01 NA 4.38%
2017-07-01 NA 4.55%
2017-08-01 5.06% 4.56%
2017-09-01 NA 4.54%
2017-10-01 NA 4.53%
2017-11-01 5.06% 4.57%
2017-12-01 5.06% 4.71%
2018-01-01 NA 4.80%
2018-02-01 NA 4.86%
2018-03-01 NA 4.83%
2018-04-01 NA 4.47%
2018-05-01 NA 5.18%
2018-06-01 NA 4.97%
2018-07-01 NA 4.87%
2018-08-01 NA 4.79%
2018-09-01 NA 5.15%
2018-10-01 NA 5.20%
2018-11-01 NA 5.09%
2018-12-01 NA 5.33%

Top Cities in North Dakota by Total HECM Loans Originated

Rank City Zip Total
1 BISMARCK 58501 102
2 FARGO 58103 96
3 MINOT 58703 76
4 GRAND FORKS 58201 72
5 DICKINSON 58601 52
6 MANDAN 58554 34
7 WILLISTON 58801 24
8 JAMESTOWN 58401 22
9 WEST FARGO 58078 22
10 VALLEY CITY 58072 21
11 WAHPETON 58075 15
12 BOWMAN 58623 12
13 DEVILS LAKE 58301 10
14 CASSELTON 58012 10
15 LINCOLN 58504 7
16 GRAFTON 58237 7
17 BOTTINEAU 58318 6
18 GARRISON 58540 5
19 HILLSBORO 58045 4
20 HEBRON 58638 4
21 WATFORD CITY 58854 4
22 OAKES 58474 4
23 HETTINGER 58639 4
24 SURREY 58785 3
25 VELVA 58790 3
26 LAMOURE 58458 3
27 KILLDEER 58640 3
28 NEW ENGLAND 58647 3
29 HAZEN 58545 3
30 HARVEY 58341 3

Find out how a reverse mortgage loan can be part of a comfortable retirement. Click here for free information.

North Dakota HUD Information

Department of Housing and Urban Development
657 2nd Avenue North
Third Floor, Room 366
P.O. Box 2483
Fargo, ND 58108-2483
(701) 239-5136
https://www.hud.gov/states/north_dakota/

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