Golden Gateway Financial recently published an interesting analysis of reverse mortgage lending criteria alongside the most recent S&P/Case-Shiller analysis of depreciating home values. The study shows the dynamics of how eroding home values, reverse mortgage lending limits, and age intersect to impact equity available to senior citizens.
The table below highlights Golden Gateway Financial’s findings in representative markets by both age and calendar year. The table assumes a home valued at $200,000 in January of 2007, and the cash available is computed using the CMT based HECM 150. Golden Gateway also provides a more comprehensive table reflecting all of the markets referenced in the S&P/Case-Shiller Home Price Index which you can download here..
To read a copy of the press release click the link below.