HW Media connects and informs decision makers across the housing economy. Professionals rely on HW Media for breaking news, reporting, and industry data and rankings. Moving the Housing Market Forward.
NewsReverse MortgageTechnology

Reverse Mortgage Calculator With New HECM Loan Limit

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.

Ibis Calculator w/ 417K Limit