Another month, another decrease in reverse mortgage rates.
In case you’ve NEVER read a single one of my posts, let me give you a REALLY quick lesson about how low interest rates help potential reverse mortgage borrowers.
The amount a borrower qualifies for (LTV), is based on two factors:
Factor #1 – Age of the youngest borrower. Factor #2 – The current interest rate.
Unless you have some sort of time machine, you can’t change your date of birth. Advances in technology may change this in the future, but for now, you’re stuck with your DOB. Sorry about that.
That leaves the only other determining factor as to how much you can draw on a reverse mortgage: the interest rate. That is the sole purpose of this short post.
Interest rates on reverse mortgages update every Tuesday and are directly tied to LIBOR. As the rate goes down, the amount of proceeds you qualify for goes up. At rates go up, the amount of proceeds you qualify for goes down.
Rates are INSANELY low right now. That is the shortest, easiest way to explain it.
This means borrowers that want to stay in their home can now access more cash.
This means borrowers that want to buy a new home with the HECM for Purchase will see lower down payments required. Click here to watch our video overview of how this program works.
Here’s the bottom line – If you’ve been considering the reverse mortgage, now is the time to take action.
As I promised – short and sweet. 🙂