High Home Values and a Jumbo Reverse Mortgage

January 22, 2020
High Home Values and a Jumbo Reverse Mortgage

Home values have been on the rise over the past few years, with the 2019 median home value in the US being $244,045, which is a 3,7% increase over the previous year.1 However, home values can differ greatly depending on where you live.  Here’s a look at the top ten states with the highest median home values in 2019.2

  1. Hawaii- $636,451
  2. District of Columbia- $626,911
  3. California- $554,886
  4. Massachusetts- $442,856
  5. Washington- $409,228
  6. Colorado- $397,820
  7. Oregon- $361,970
  8. Utah- $348,376
  9. New Jersey- $335,607
  10. New York- $321,934

As mentioned above, home values have been on the rise; moreover, there are some cities where the median home value increase is exponentially higher than other cities across the United States.  Below are the top ten cities with the highest home values.3

  1. San Jose, California- $1,100,000
  2. San Francisco, California- $860,000
  3. Los Angeles, California- $634,000
  4. Honolulu, Hawaii- $600,000
  5. Oxnard, California- $589,000
  6. San Diego, California- $545,000
  7. Seattle, Washington- $430,000
  8. New York, New York- $410,000
  9. Boston, Massachusetts- $410,000
  10. Denver, Colorado- $383,000

The U.S. Department of Housing and Urban Development (HUD) has raised the Maximum Claim Amount (MCA) for FHA-insured reverse mortgages, beginning January 1, 20204.  The MCA has gone from $726,525 to $765,600. With this increase, borrowers who have higher home values may be able to access more of their home’s equity than what was available in previous years.

For senior homeowners who have higher-valued homes that exceed the $765,600 MCA for a Home Equity Conversion Mortgages (HECMs), they may benefit from a jumbo reverse mortgage.  A jumbo reverse mortgage can allow senior homeowners access to a portion of their home’s equity up to $4,000,000 (depending on the lender). 

If you live in an area with higher home values and are interested in learning if a jumbo reverse mortgage might work for you, call 1-800-976-6211 to speak with a licensed reverse mortgage specialist.

1 https://www.zillow.com/home-values/

2 https://www.businessinsider.com/average-home-prices-in-every-state-washington-dc-2019-6#2-district-of-columbia-626911-50

3https://www.kiplinger.com/tool/real-estate/T010-S003-home-prices-in-100-top-u-s-metro-areas/index.php

4Applies only to loans with case numbers assigned on or after January 1, 2020.