Increased Max Claim Amount
Beginning January 1, 2022,3 the MCA has increased to $970,800 which allows borrowers with higher home values to access more equity than what was allowed in 2021. This increase may help borrowers access more funds by refinancing their existing reverse mortgage, while still having an FHA-insured loan.
With the Fed expected to raise rates, now may be the time to refinance your existing reverse mortgage. If you currently have an adjustable-rate mortgage, you may want to consider a fixed-rate loan. Furthermore, if you are in a fixed-rate mortgage, you may be able to take advantage of lower interest rates with the refinancing of your current loan.
Higher Home Values
With home values continuing to rise, borrowers may be wondering how they can access the additional equity in their homes. By refinancing your HECM loan, you may be able to gain access to funds that weren’t available with your current loan due to the home gaining equity.
For some borrowers, they have seen their home values rise sharply, even above the new $970,800 MCA limit.
For these homes, a HECM to Jumbo refinance may be a better refinance option. Depending on the lender, a jumbo reverse mortgage can allow senior borrowers access to a portion of their home’s equity up to $4,000,000.
To see if refinancing your existing reverse mortgage may benefit you, call 800.976.6211 to speak with a licensed loan advisor.
3Applies only to loans with case numbers assigned on or after January 1, 2022.