REMINDER: The FHA insured lending limit on Reverse Mortgages (or Home Equity Conversion Mortgages (HECM)) was increased January 1, 2020 to $765,600.00.*
With increased real estate values, and the higher limit, this allows homeowners to have access to a larger percentage of their home’s equity. The amount of funds a homeowner is eligible for is called the ‘principal limit.’ The principal limit is based upon the youngest homeowner’s birth date, the value of the home, and the rates and programs available on reverse mortgages at the time they are obtaining the loan.
The historically low rates at the time of this posting, combined with the higher principal limit, may allow more homeowners the option of eliminating their mortgage and monthly mortgage payments. While homeowners still have responsibility for the property taxes, property insurance, HOA dues and home maintenance, who wouldn’t give up their mortgage payment if they had a chance?
If you are a senior homeowner, call me NOW to see what options might be available to you.
Limitations and restrictions may apply. This post is not from HUD or FHA and has not been approved by any government agency.
*Note there are special exceptions areas: Alaska, Hawaii, Guam, and the Virgin Islands.