Maximum assessed value of reverse mortgages
I have been trying to find a way to get more money out of my existing reverse mortgage, thinking that should be possible since the assessed value of my house has increased from around $530K at the time of the RM to around $770K now. The outstanding balance on the RM is $490K and the interest rate is 6.06%. I took all of the original cash out of our home at the time of RM closing, which was around $332K. We owned the home at the time with no mortgage or other debts against the property. The article I just read stated that the Feds have raised the maximum assessed value cap by $208K. This is what got my attention. I have been waiting and hoping this might happen, but all the RM lenders I talk to tell me the same thing: the cap is still $625K which does me no good. They also all tell me that refinancing a RM requires the outstanding balance must be paid off entirely in order to refinance. Clearly, if the cap is $625K and the payout cap is around 65% of that, I do not get enough to pay off the balance of $490K let alone gain anything. Please let me know if what I have outlined above is correct, and if so, is there any reason not to pursue refinancing at this time. by rbotton974 from Vista, California. Mar 16th 2016
Martin Mesa (info_966_586)
#670 ranked lender in California - 20 contributions
I don't think you'll be able to get any more cash out. The current balance of $490K will prohibit you from getting more $ out of your home with a new RM.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
I'm not sure what you read, but HUD releases maximum loan amounts for FHA and for HECM's (reverse mortgage) each year.. and the maximum loan amount still remains at $625K. Here's a link to the HUD's mortgagee letters addressing maximum loan amounts for 2016. http://portal.hud.gov/hudportal/documents/huddoc?id=15-29ml.pdf I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347
R. Jocelyn Anderson (labrokergirl)
#1266 ranked lender in California - 38 contributions
What the other lenders mentioned is correct. At Marina Financial Funding, Reverse Mortgages are one of our specialties. Call us today for a free NO obligation consultation at 310-455-0021, ask for Roberta. We can help!
Sara Deere (Mortgagequeen2)
#15 ranked lender in Missouri - 608 contributions
Lenders all over the country are doing only a couple streamline reverse mortgage refinances a year. Five basic rules have to be taken in consideration when doing a streamline reverse mortgage. Since you are older the amount of proceeds available would be more. The problem I can see is your current balance is very high, and though your house has increased the value to 770K. The calculation is still based on the cap of 625K. I would also check with a couple lenders who still do participate in Jumbo Reverse Mortgage programs in California.
Ask our community a question.
Get an answer
Related Questions
