With the new HECM loan limits announced by HUD at last weeks MBA conference, I thought you would want to run a few scenarios to see how much borrowers may qualify for with the new limit.
Here is a quick scenario for a 73 year old with no mortgage balance and a home worth $500,000:
| Available | HECM CMT 175 w/ Current Limit | HECM CMT 175 w/ 417K Limit | |
| After Fees | $231,818 | $269,752 |
Most reverse mortgage calculator providers like Ibis and Reverse Vision won’t be updating their calculators until the mortgagee letter comes out, but Ibis was nice enough to provide RMD readers a calculator with the 417K limit. This tool shows the new national limit with three different Treasury HECM margins (175, 200 and 225), and has loan fees constrained to a range from $2,500 to $6,000.
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