Four Things You Should Know About Life Insurance Company Financing

Four Things You Should Know About Life Insurance Company Financing


While being a successful mortgage banker is about experience and the number of deals done, it’s also about the arrows in your quiver, according to PSRS Principal Kostas Kavayiotidis. Access to life insurance money is a distinct advantage in the PSRS quiver.

Here’s what borrowers need to know about Life Insurance financing:

Flexible Terms:

We can do any loan term from floating rate, up to 30 years, or even 40 years, fixed. We recently handled a 20-year, interest-only fixed loan. Most borrowers don’t realize the flexibility of life insurance lending. Right now, we’re doing a lot of long-term loans and a lot of long-term interest-only deals.

Prepayment Options:

We can do any form of flexible pre-payment. Whether it’s some sort of step-down for half the term or longer open period at the end of the term. With life insurance financing, we can pretty much design any structure of pre-payment flexibility that our borrowers need.

Rate Lock:

This is a distinct advantage for a lot of clients who want to take the interest rate risk out of the deal. When we sign the application, your loan is rate locked for 60, 90 or even 120 days. In the case where we do a forward we can rate lock for anywhere from six to nine months forward [at a marginal cost in spread].

Loan Servicing:

At PSRS, we service about $5.5 billion in loans. To ensure the best service we stay close to the process, not only through the loan closing but for the term of the loan. That’s why many clients will still call us after several years for assistance on things such as lease approvals, releasing parcels from the collateral for loan assumptions, etc. PSRS clients rely on us because they know we’re going to be here to make sure they’re well taken care of throughout the life of the loan. And we have a lot of long-standing insurance company relationships that we lean on, on a daily basis on behalf of our clients, and that is the strongest arrow in our quiver.

Contact PSRS to discuss life money options.



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