Last week Golden Gateway Financial shared the average home values of individuals using its calculator to research reverse mortgages in the fourth quarter of 2008. The data showed that many states with large populations of seniors have experienced significant self reported drops in home values over the past year.
According to the press release, seniors in five states have a self-reported average home value between the most recent HECM loan limit of $417,000 and the new limit of $625,500. Those states include California, Massachusetts, New York, Washington and South Carolina. This means that many seniors who previously stood to benefit from these new limits, can no longer realize the full potential of their home’s equity.
"It is encouraging that the government is moving quickly to provide seniors with even greater access to the equity that exists in their homes," said Eric Bachman, founder and CEO of Golden Gateway Financial. "But this data shows that falling home values are quickly outrunning new lending limits."
* Self-reported home values by seniors, 62+ in Golden Gateway Financial’s reverse mortgage cash calculator for Q4 ’08
** Indicates states that were previously above prior lending limit of $417,000 during 2008 but declined in Q4 ’08