The U.S. Department of Housing and Urban Development (HUD), has announced that the Maximum Claim Amount (MCA) for 2022 will increase to $970,800 effective January 1, 2022.1 The MCA has increased by $148,425 from 2021’s MCA of $822,375. The FHA has increased the Home Equity Conversion Mortgage (HECM) limit for the sixth straight year.  The new loan limit allows borrowers who have higher home...

One of the most common questions borrowers and their heirs have about a reverse mortgage loan is: when does the loan need to be repaid? A Home Equity Conversion Mortgage (HECM), also known as a reverse mortgage loan, allows homeowners who are 62 and older access a portion of their home equity by converting it into funds without having to repay the loan for as long as the loan obligations are met...

A common question asked by senior homeowners when they are looking into a reverse mortgage loan is, “How much money can I get?” There are a few factors used when determining the amount of funds a borrower can receive. While no lender will allow you to borrow 100% of your home’s equity, the funds you receive from a reverse mortgage will only be a portion of your equity. To determine the maximum...

Reverse mortgages are a complex product, and with that complexity, there are some common misconceptions about how they work. Reverse mortgages were created specifically for seniors to provide them with an option to help improve their financial situation in retirement. To help better understand reverse mortgages, here are facts about the most common misconceptions about the product. Myth: Reverse...

Interest rates continue to remain low, but no one knows for how much longer.  Many senior homeowners who have a reverse mortgage on their current home have seen their home values increase and may be able to benefit from refinancing. There could be many benefits to refinancing that you might not realize, including having access to additional cash. Lower Interest Rates It may be beneficial to...