HUD announced last week they will be reducing the current benefit amounts on average by 20%.
They will also increase the upfront mortgage insurance fee from .5% to 2.0% of the appraised value on loans initially drawing less than 60% of the benefit amount. As an example, the current fee on a $300,000 home is $1,500. It will increase to $6,000 on October 2nd!!!! Plus they will offer a lower benefit amount.
It’s critical that anyone who may be considering using a reverse mortgage product to access equity or pay off an existing mortgage balance contact us immediately. We only have a small window to lock them in at the existing costs and benefits.
Ken Seal, CRMP
Reverse Mortgage Specialist