All mortgages—traditional or reverse—are based on numbers. Applying for and receiving a mortgage when rates are favorable is one of the most crucial parts of getting any form of mortgage. Of course, when applying for a reverse mortgage, mortgage rates that are advantageous while acquiring a standard mortgage might not be in your best interest. If you’re applying for a reverse mortgage, it’s crucial that you are aware of the current reverse mortgage rates as well as what to look for while comparing offers.
Home Equity Conversion Mortgages:
These reverse mortgages are among the most prevalent and do have substantial up-front expenses. The money made can, however, be used to any use. Prior to the loan being granted, financial advice is required. The amount of money you can receive depends on the value of your home, interest rates, and other variables.
Home equity conversion mortgage (HECM) rates as of September 2022 range from 6.06% (7.06% APR) to 6.43% (7.43% APR). For these HECMs, the maximum loan amount is $970,800. For HECM Purchase Reverse Mortgages, the rates and the maximum lending amount are the same.
Jumbo mortgages, of course, have bigger limits, but they also have higher interest rates. With a $4,000,000 maximum lending limit, interest rates range from 8.365% (8.500% APR) to 9.365% (9.500% APR).
The Implications for You
You can choose to hold off on applying for a reverse mortgage until interest rates start to fall. Unfortunately, there is no guarantee that such a drop will occur, particularly if the economy of the nation becomes more shaky. It might be a smart idea to move forward with the mortgage and then think about a refinance at a later time because interest rates are still very close to where they were a few years ago. Before interest rates continue to rise, get in touch with PS Mortgage Lending to learn how we can assist you in obtaining a reverse mortgage.
Are you or a loved one considering a reverse mortgage? Reach out to Phil Stevenson and the Expert Mortgage Team at PS Mortgage Lending to see how you can benefit!
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