With the new reverse mortgage loan limit on its way, I know that originators are looking for a calculator that shows the $625,500 loan limit. IBIS published a sample calculator for RMD readers which compares a HECM T+300 with current limits and a $625,500 limit (columns 1 and 2). Ditto for a HECM L+250 (cols. 3 and 4). And shows a fixed-rate HECM with a $625,500 limit (col. 5).
Here is a quick scenario for a 75 year old with no mortgage balance and a home worth $700,000:
| HECM Libor 2.50 | HECM Libor 2.50 | |||||
| Monthly w/417K | Monthly w/625.5K | |||||
| Available | ||||||
| After Fees | $276,712 | $421,265 |
If you would like to have a calculator for your company, licensees can show whatever products, margins, and service fees they wish. They can also choose which lending limit structures they wish to use.
Go to Reverse Mortgage Calculator and run thru the third page in the sequence.
Jarred Talmadge offers thoughts about how the industry can push forward through the threat of a government shutdown.