Reverse Mortgage Changes 2017 that Homeowners 62 Plus Should be Aware Of
The Department of Housing and Urban Development announced significant changes to the HECM reverse mortgage
loan program effective October 2, 2017. They do not affect existing reverse mortgages.
Reverse Mortgage Changes
The first change is in the amount that can be borrowed (initial principal limit). It is anticipated that, depending on the
borrower’s age, the reduction in loan proceeds could be a 5 percent to an 11 percent decrease in loan proceeds.
The second change is in the initial mortgage insurance premium. Currently it is 0.5 present for the majority of borrowers. The premium will now be increased to 2.0 percent for all borrowers.
There is however a positive change for the borrower. The annual mortgage insurance premium will be reduced from 1.25 percent to 0.5 percent.
Summary of Reverse Mortgage Changes 2017
1. Amount you can borrow: decreasing 5 to 11%
2. Initial mortgage insurance premium: increasing from .5 (1/2)% to 2%
3. Annual mortgage insurance premium: decreasing from 1.25 to .5 (1/2)%
To learn more about these changes and the HECM reverse mortgage loan program visit my reverse mortgage web site or call and I would be happy to discuss its benefits. It is not for everybody but in the right circumstance it can offer financial flexibility and security.
Do you have questions about the Reverse Mortgage Changes 2017?
Tom Lubas is Reverse Mortgage Specialist serving reverse mortgage clients in Santa Rosa, Sebastopol Healdsburg, Windsor, Petaluma and other Sonoma County communities from his office in Forestville, California. Tom is happy to help you with your reverse mortgage questions. Just contact him through his reverse mortgage website.