California Reverse Mortgage News

When long term interest rates increase, reverse mortgages take a direct hit.
How? The prevailing interest rate is among the criteria that's used to determine your principal limit factor, or how much of a loan you qualify for.

This increase affects all reverse mortgage loan types.
The amount of equity in your home, the age of the youngest borrower, demonstrating your ability and willingness to pay monthly property expenses (tax, insurance h.o.a.) are the other major factors that go into qualifying for a reverse mortgage.
A half percent increase may not affect qualifying all that much, but anything up over a cumulative one percent increase, go take a bite out of the funds you would receive.

However, if you have an already existing HECM reverse mortgage line of credit, an increasing rate may be a good thing because of the growth rate.
As rates go up, and you have a standby HECM reverse mortgage line of credit, so does the growth rate on your line of credit which means more funds for you to access since the available line of credit grows at a monthly rate over the life of the loan.
If you have questions on the HECM reverse mortgage line of credit growth rate, feel free to call Kevin Walton. 800-506-0632 ext. 0 or visit our website,


Posted by Kevin Walton on September 21st, 2015 10:22 AM
An recently written article stated Baby Boomers are carrying their mortgage payments into their retirement years more than any other generation.
If their retirement portfolios take a hit, that can have a negative effect on the ability to make monthly mortgage payments.
If the senior citizen borrower is of a certain age and has ample equity in the property, a HECM Reverse Mortgage can eliminate the existing monthly payment altogether.
To read more on this article, please click here.
To visit my Reverse Mortgage website and watch free videos that highlight reverse mortgage uses as well as the 20 most frequently asked questions on reverse mortgages, click here.
Kevin Walton
Certified Mortgage Advisor
Cell: 800-506-0632 ext. 0
Posted by Kevin Walton on September 10th, 2015 2:24 PM