…to $970,800.00.

the significance of this is profound.

Just 5 years ago the equity cap was raised to $636,000. That meant a $1,000,000 home would only benefit from 55% of the cap-$636,000.00; The remaining equity above the cap amount was not included in the debt to equity ratio and was lost to the Borrower.

That meant if you had a mortgage balance on your home of $330,000 a reverse could refinance all of it and there would be no remaining equity available unless the Borrower made strategic payments to the loan. At the new cap levels, it’s capable of paying off around %530,000 of mortgage debt or 9in a smaller mortgage debt) convert the previous $330,000 mortgage and provide an additional $125,000 cash at close/or on HELOC balance .

Jumbo reverses came out to enable these borrowers to take full advantage of their available equity instead of a mere 63% of it.

By raising the cap to its current high water mark, a larger mortgage can be refinanced and that payment repurposed to other relevant tasks in retirement. Less equity is denied the Borrower.

The Reverse HELOC is still the greatest financial planning tool of all time…now, with greater capacities.