Because of the financial interventions that the government has been making, the economy is slowly showing signs of surviving the COVID-19 crisis. Receiving the stimulus package three times greatly benefited the economic activities of everybody. And now the vaccines are here, Americans expect that life will start to go back to what it used to be before.
The majority of the lenders are now forecasting their profit margins will drop in the coming days, but they are also expecting a rise in house purchases soon.
Currently, lenders are prepared to absorb the costs just so the market will remain active, but they will have to raise their rates soon to keep the market afloat. The past couple of weeks has seen an upward rise in mortgage rates, and it is steady in the 3% range. Comparing this year's numbers to the last year of the same month, there is a downtrend in the refinance application. According to the latest Mortgage Bankers Association Weekly Mortgage Applications Survey, last year's applications were 43% higher than the applications of the same month this year.
Reverse mortgage fixed rates play between 3.06 - 3.68 % depending on the Annual Percentage Rates (APR). Adjustable rates are between 1.83%-2.58. The general lending limit for a HECM reverse mortgage is at $822,375.
The numbers above are not final but are published to give you an idea of the rates between fixed and adjustable rates. The sooner that you talk to a loan officer, the better as they can help you understand the bigger picture
- loan amounts, fees, possible rate changes, among others.
So if you are 62 years old and above, and the deed of the house that you are living in now is under your name, then you might want to consider applying for a reverse mortgage
. Ensure that the property is your primary residence and you have at least 50% equity on it.