HUD issued new principal limit factors (PLF) factors for the HECM reverse mortage. Why is this important? What the heck is a PLF table you ask? The principal limit factor (PLF) table determines the amount of proceeds that will be available to HECM reverse mortgage borrowers after August 4, 2014. Previous tables were based on the assumption that all homeowners would be over the qualifying age of 62. The new tables account for recent changes allowing for the fact the youngest homeowner may be under 62 years of age. Proceeds available will be based on the age of the youngest co-borrower. At current rates borrowers closer to 67 years of age will see a slight increase in available funds and borrowers over 72 will see a more substantial increase in available proceeds. Signet Mortgage Corporation is a member of the National Reverse Mortgage Lenders Association and is licensed in five Western states. We believe the HECM reverse mortgage is best used to compliment retirement plans to help provide a more secure and flexible retirement. Call us today and let’s talk. No obligation of course but we can help you understand how a reverse mortgage can meet your needs.
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