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|
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.