Are you looking for ways to enjoy your retirements years? HUD just raised the reverse mortgage loan limits to almost $1 million dollars in 2022! That means more money for you and your family. This is a great opportunity for you to get more money out of your home so you can live comfortably in retirement. Don’t wait, interest rates are going up, so now is the time to look into a reverse mortgage. In this article, I will share the top reasons why you need to consider a reverse mortgage and how you can get started today.
The HECM reverse mortgage loan limit for 2022 is $970,800. This is the largest increase from the previous year yet. This is great news for seniors who are looking for more money to help them during retirement and do not want to move or sell their existing homes.
Latest in Reverse mortgage loan limits
In January 2022, FHA & HUD raised HECM (home equity conversion mortgage) Reverse mortgage loan limit or the maximum claim amount to $970,800. It is determined by the appraised value of your home. This is great news for seniors who are looking to take out a Reverse mortgage loan, as the increased limit will provide more financial security in their later years. The new reverse mortgage lending limit increased from 2021 by $148,425. This is one of the largest increases in loan limits ever. Since HECM is a government-backed loan, it gives seniors the confidence that their loan will be insured by the FHA (Federal Housing Administration), no matter what.
History of HECM reverse mortgage lending limits
Prior to 2018, the reverse mortgages loan limit was unchanged for many years. Since 2018, the limit has been increased every year to accommodate for the increase in home prices. This provides seniors with the opportunity to borrow more money as their home values continue to go up.
The Reverse mortgage loan limit in 2020 was $822,375, and in 2021 it increased to $868,625. With the new Reverse mortgage lending limit of $970,800 in 2022, seniors will have even more access to cash from their homes.
Keep in mind that amount of loan you can take out depends on your age. Generally, the older you are, the more money you can borrow.
What Can You Do With a Reverse Mortgage Loan?
With a reverse mortgage loan, you have the flexibility to use the money however you want. It is important to note that you are never required to take out all of the money at once and you can access it as needed. Seniors can use Reverse mortgage loan proceeds for a variety of purposes, such as:
Reverse mortgage Eligibility?
To be eligible for a HECM (Home equity conversion mortgage), you must be at least 62 years old and have significant equity in your house. You also cannot be behind on any federal debt, such as your mortgage, taxes, or insurance. Please contact me right away if you meet the above criteria and want to learn more about it. We
The benefits of a reverse mortgage
One of the biggest benefits of a Reverse mortgage loan is that it allows seniors to age in place. This means that they can continue to live in their homes without worrying about making monthly mortgage payments. In addition, Reverse mortgage loans are a great way to supplement your retirement income. With the money from your Reverse mortgage, you can enjoy life more and not have to worry about running out of money.
Reverse Mortgage Benefits Summary
- Allows seniors to age in place
- Supplement retirement income
- Can be used for a variety of purposes
- No monthly mortgage payments
Increased borrowing limits will give seniors more flexibility
With the largest increase in loan limit yet, this gives seniors more access to cash from their homes. Seniors can use this additional cash for anything they please, such as supplementing their retirement income, taking dream vacations, or even buying a new home. This is more important now since inflation and reverse mortgage interest rates are on the rise. Every day goods and services are also going up in price, you don’t want to wait too long to get a Reverse mortgage.
Take advantage of Low-interest rates
The US Federal has already announced a series of interest rate hikes that will affect mortgage rates. It is important that borrowers lock in a Reverse mortgage at today’s low rates, as they are only going to go up from here. In addition, higher interest rates usually negatively impact home prices, so people interested in a reverse mortgage should act fast.
You Should Refinance?
If you had a reverse mortgage before and haven’t refinanced, now may be a good time to consider refinancing. You may be able to unlock additional equity from your home and lower the interest rate of your original reverse mortgage loans. This will provide you with more money to use now and in the future.
Frequently Asked Questions
The Bottom Line
The Reverse mortgage loan limit increase in 2022 is great news for seniors who are looking to tap into their home equity. With this increase, they will have more access to cash that can be used for a variety of purposes. In addition, with rates on the rise, it’s important to act fast and take advantage of today’s low rates. Don’t wait, Reverse mortgage loans are a great way to supplement your retirement income and pay off all kinds of expenses. Contact Jeannette today for a free reverse mortgage consultation.