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APPENDIX 9.0 – ASSUMED LOAN PERIODS FOR COMPUTATIONS OF TOTAL ANNUAL LOAN COST RATES (04/29/2024)
a) Required tables. In calculating the total annual loan cost rates, creditors shall assume three
loan periods, as determined by the following table.
b) Loan periods.
1) Loan Period 1 is a two-year loan period.
2) Loan Period 2 is the life expectancy in years of the youngest Borrower to become obligated on the reverse mortgage loan, as shown in the U.S. Decennial Life Tables for 1979–1981 for females, rounded to the nearest whole year.
3) Loan Period 3 is the life expectancy figure in Loan Period 2, multiplied by 1.4 and rounded to the nearest full year (life expectancy figures at 0.5 have been rounded up to 1).
4) At the creditor’s option, an additional period may be included, which is the life expectancy figure in Loan Period 2, multiplied by 0.5 and rounded to the nearest full year (life expectancy figures at 0.5 have been rounded up to 1).
Age of Youngest
Loan Period 1
[Optional Loan Period (in years)]
Loan Period 2 (life expectancy)
Loan Period 3
Borrower
(in years)
(in years)
(in years)
62 2 [11] 21 29 63 2 [10] 20 28 64 2 [10] 19 27 65 2 [9] 18 25 66 2 [9] 18 25 67 2 [9] 17 24 68 2 [8] 16 22 69 2 [8] 16 22 70 2 [8] 15 21 71 2 [7] 14 20 72 2 [7] 13 18 73 2 [7] 13 18 74 2 [6] 12 17 75 2 [6] 12 17 76 2 [6] 11 15 77 2 [5] 10 14 78 2 [5] 10 14 79 2 [5] 9 13 80 2 [5] 9 13
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Appendix 9.0 – Assumed Loan Periods for Computations of Total Annual Loan Cost Rates (04/29/2024)
Age of Youngest
Loan Period 1
[Optional Loan Period (in years)]
Loan Period 2 (life expectancy)
Loan Period 3
Borrower
(in years)
(in years)
(in years)
81 2 [4] 8 11 82 2 [4] 8 11 83 2 [4] 7 10 84 2 [4] 7 10 85 2 [3] 6 8 86 2 [3] 6 8 87 2 [3] 6 8 88 2 [3] 5 7 89 2 [3] 5 7 90 2 [3] 5 7 91 2 [2] 4 6 92 2 [2] 4 6 93 2 [2] 4 6 94 2 [2] 4 6 95 and over 2 [2] 3
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