Reverse Mortgage calculation changes as of August 4, 2014

recerse mortgage calculation changes

The U.S Department of Housing and Urban Development has made several changes to the Home Equity Conversion Mortgage(HECM) with regards to the new Principal Limit Factors(PLFs).

HECM Principal Limit Factors (PLFs) provide the percent of Maximum Claim Amount (MCA) allowable in total cash draws, given the age of the borrower(s) and the “expected” interest rate of the loan. The General Table provides PLFs for eligible borrowers by age and interest rate, for interest rate levels at which allowable PLFs are sufficiently large enough that borrowers can reasonably receive net benefits from HECM. Each row represents one single age, and provides a series of PLFs for interest rates within a given percentage-point range, in one-eighth-percent increments. The PLFs presented here are in decimal form (e.g., 0.562 equals 56.2%).

PLFs do not change for borrowers above the age of 90 years. While such borrowers are still eligible for HECM, they are not eligible for any increase in PLF. All effective rates below 5.000% have the same PLF as for the 5.000% effective rate, by borrower age. The Tables do not include PLFs for rates above 10.000%. Additional rates may be published as market conditions change. Below is the table in Loan-To-Value (e.g., 0.562 equals 56.2%).

Age    Interest    LTV          Interest    LTV          Interest    LTV         Interest    LTV         Interest    LTV         Interest    LTV        

18 4.000 0.317 4.125 0.317 4.250 0.317 4.375 0.317 4.500 0.317 4.625 0.317 4.750 0.317 4.875 0.317
19 4.000 0.317 4.125 0.317 4.250 0.317 4.375 0.317 4.500 0.317 4.625 0.317 4.750 0.317 4.875 0.317
20 4.000 0.326 4.125 0.326 4.250 0.326 4.375 0.326 4.500 0.326 4.625 0.326 4.750 0.326 4.875 0.326
21 4.000 0.326 4.125 0.326 4.250 0.326 4.375 0.326 4.500 0.326 4.625 0.326 4.750 0.326 4.875 0.326
22 4.000 0.326 4.125 0.326 4.250 0.326 4.375 0.326 4.500 0.326 4.625 0.326 4.750 0.326 4.875 0.326
23 4.000 0.326 4.125 0.326 4.250 0.326 4.375 0.326 4.500 0.326 4.625 0.326 4.750 0.326 4.875 0.326
24 4.000 0.326 4.125 0.326 4.250 0.326 4.375 0.326 4.500 0.326 4.625 0.326 4.750 0.326 4.875 0.326
25 4.000 0.350 4.125 0.350 4.250 0.350 4.375 0.350 4.500 0.350 4.625 0.350 4.750 0.350 4.875 0.350
26 4.000 0.350 4.125 0.350 4.250 0.350 4.375 0.350 4.500 0.350 4.625 0.350 4.750 0.350 4.875 0.350
27 4.000 0.350 4.125 0.350 4.250 0.350 4.375 0.350 4.500 0.350 4.625 0.350 4.750 0.350 4.875 0.350
28 4.000 0.350 4.125 0.350 4.250 0.350 4.375 0.350 4.500 0.350 4.625 0.350 4.750 0.350 4.875 0.350
29 4.000 0.350 4.125 0.350 4.250 0.350 4.375 0.350 4.500 0.350 4.625 0.350 4.750 0.350 4.875 0.350
30 4.000 0.373 4.125 0.373 4.250 0.373 4.375 0.373 4.500 0.373 4.625 0.373 4.750 0.373 4.875 0.373
31 4.000 0.373 4.125 0.373 4.250 0.373 4.375 0.373 4.500 0.373 4.625 0.373 4.750 0.373 4.875 0.373
32 4.000 0.373 4.125 0.373 4.250 0.373 4.375 0.373 4.500 0.373 4.625 0.373 4.750 0.373 4.875 0.373
33 4.000 0.373 4.125 0.373 4.250 0.373 4.375 0.373 4.500 0.373 4.625 0.373 4.750 0.373 4.875 0.373
34 4.000 0.373 4.125 0.373 4.250 0.373 4.375 0.373 4.500 0.373 4.625 0.373 4.750 0.373 4.875 0.373
35 4.000 0.396 4.125 0.396 4.250 0.396 4.375 0.396 4.500 0.396 4.625 0.396 4.750 0.396 4.875 0.396
36 4.000 0.396 4.125 0.396 4.250 0.396 4.375 0.396 4.500 0.396 4.625 0.396 4.750 0.396 4.875 0.396
37 4.000 0.396 4.125 0.396 4.250 0.396 4.375 0.396 4.500 0.396 4.625 0.396 4.750 0.396 4.875 0.396
38 4.000 0.396 4.125 0.396 4.250 0.396 4.375 0.396 4.500 0.396 4.625 0.396 4.750 0.396 4.875 0.396
39 4.000 0.396 4.125 0.396 4.250 0.396 4.375 0.396 4.500 0.396 4.625 0.396 4.750 0.396 4.875 0.396
40 4.000 0.420 4.125 0.420 4.250 0.420 4.375 0.420 4.500 0.420 4.625 0.420 4.750 0.420 4.875 0.420
41 4.000 0.420 4.125 0.420 4.250 0.420 4.375 0.420 4.500 0.420 4.625 0.420 4.750 0.420 4.875 0.420
42 4.000 0.420 4.125 0.420 4.250 0.420 4.375 0.420 4.500 0.420 4.625 0.420 4.750 0.420 4.875 0.420
43 4.000 0.420 4.125 0.420 4.250 0.420 4.375 0.420 4.500 0.420 4.625 0.420 4.750 0.420 4.875 0.420
44 4.000 0.420 4.125 0.420 4.250 0.420 4.375 0.420 4.500 0.420 4.625 0.420 4.750 0.420 4.875 0.420
45 4.000 0.443 4.125 0.443 4.250 0.443 4.375 0.443 4.500 0.443 4.625 0.443 4.750 0.443 4.875 0.443
46 4.000 0.443 4.125 0.443 4.250 0.443 4.375 0.443 4.500 0.443 4.625 0.443 4.750 0.443 4.875 0.443
47 4.000 0.443 4.125 0.443 4.250 0.443 4.375 0.443 4.500 0.443 4.625 0.443 4.750 0.443 4.875 0.443
48 4.000 0.443 4.125 0.443 4.250 0.443 4.375 0.443 4.500 0.443 4.625 0.443 4.750 0.443 4.875 0.443
49 4.000 0.443 4.125 0.443 4.250 0.443 4.375 0.443 4.500 0.443 4.625 0.443 4.750 0.443 4.875 0.443
50 4.000 0.460 4.125 0.460 4.250 0.460 4.375 0.460 4.500 0.460 4.625 0.460 4.750 0.460 4.875 0.460
51 4.000 0.460 4.125 0.460 4.250 0.460 4.375 0.460 4.500 0.460 4.625 0.460 4.750 0.460 4.875 0.460
52 4.000 0.460 4.125 0.460 4.250 0.460 4.375 0.460 4.500 0.460 4.625 0.460 4.750 0.460 4.875 0.460
53 4.000 0.460 4.125 0.460 4.250 0.460 4.375 0.460 4.500 0.460 4.625 0.460 4.750 0.460 4.875 0.460
54 4.000 0.460 4.125 0.460 4.250 0.460 4.375 0.460 4.500 0.460 4.625 0.460 4.750 0.460 4.875 0.460
55 4.000 0.484 4.125 0.484 4.250 0.484 4.375 0.484 4.500 0.484 4.625 0.484 4.750 0.484 4.875 0.484
56 4.000 0.489 4.125 0.489 4.250 0.489 4.375 0.489 4.500 0.489 4.625 0.489 4.750 0.489 4.875 0.489
57 4.000 0.495 4.125 0.495 4.250 0.495 4.375 0.495 4.500 0.495 4.625 0.495 4.750 0.495 4.875 0.495
58 4.000 0.500 4.125 0.500 4.250 0.500 4.375 0.500 4.500 0.500 4.625 0.500 4.750 0.500 4.875 0.500
59 4.000 0.506 4.125 0.506 4.250 0.506 4.375 0.506 4.500 0.506 4.625 0.506 4.750 0.506 4.875 0.506
60 4.000 0.511 4.125 0.511 4.250 0.511 4.375 0.511 4.500 0.511 4.625 0.511 4.750 0.511 4.875 0.511
61 4.000 0.517 4.125 0.517 4.250 0.517 4.375 0.517 4.500 0.517 4.625 0.517 4.750 0.517 4.875 0.517
62 4.000 0.524 4.125 0.524 4.250 0.524 4.375 0.524 4.500 0.524 4.625 0.524 4.750 0.524 4.875 0.524
63 4.000 0.530 4.125 0.530 4.250 0.530 4.375 0.530 4.500 0.530 4.625 0.530 4.750 0.530 4.875 0.530
64 4.000 0.536 4.125 0.536 4.250 0.536 4.375 0.536 4.500 0.536 4.625 0.536 4.750 0.536 4.875 0.536
65 4.000 0.542 4.125 0.542 4.250 0.542 4.375 0.542 4.500 0.542 4.625 0.542 4.750 0.542 4.875 0.542
66 4.000 0.549 4.125 0.549 4.250 0.549 4.375 0.549 4.500 0.549 4.625 0.549 4.750 0.549 4.875 0.549
67 4.000 0.556 4.125 0.556 4.250 0.556 4.375 0.556 4.500 0.556 4.625 0.556 4.750 0.556 4.875 0.556
68 4.000 0.562 4.125 0.562 4.250 0.562 4.375 0.562 4.500 0.562 4.625 0.562 4.750 0.562 4.875 0.562
69 4.000 0.569 4.125 0.569 4.250 0.569 4.375 0.569 4.500 0.569 4.625 0.569 4.750 0.569 4.875 0.569
70 4.000 0.576 4.125 0.576 4.250 0.576 4.375 0.576 4.500 0.576 4.625 0.576 4.750 0.576 4.875 0.576
71 4.000 0.583 4.125 0.583 4.250 0.583 4.375 0.583 4.500 0.583 4.625 0.583 4.750 0.583 4.875 0.583
72 4.000 0.591 4.125 0.591 4.250 0.591 4.375 0.591 4.500 0.591 4.625 0.591 4.750 0.591 4.875 0.591
73 4.000 0.599 4.125 0.599 4.250 0.599 4.375 0.599 4.500 0.599 4.625 0.599 4.750 0.599 4.875 0.599
74 4.000 0.606 4.125 0.606 4.250 0.606 4.375 0.606 4.500 0.606 4.625 0.606 4.750 0.606 4.875 0.606
75 4.000 0.614 4.125 0.614 4.250 0.614 4.375 0.614 4.500 0.614 4.625 0.614 4.750 0.614 4.875 0.614
76 4.000 0.622 4.125 0.622 4.250 0.622 4.375 0.622 4.500 0.622 4.625 0.622 4.750 0.622 4.875 0.622
77 4.000 0.631 4.125 0.631 4.250 0.631 4.375 0.631 4.500 0.631 4.625 0.631 4.750 0.631 4.875 0.631
78 4.000 0.640 4.125 0.640 4.250 0.640 4.375 0.640 4.500 0.640 4.625 0.640 4.750 0.640 4.875 0.640
79 4.000 0.648 4.125 0.648 4.250 0.648 4.375 0.648 4.500 0.648 4.625 0.648 4.750 0.648 4.875 0.648
80 4.000 0.657 4.125 0.657 4.250 0.657 4.375 0.657 4.500 0.657 4.625 0.657 4.750 0.657 4.875 0.657
81 4.000 0.665 4.125 0.665 4.250 0.665 4.375 0.665 4.500 0.665 4.625 0.665 4.750 0.665 4.875 0.665
82 4.000 0.674 4.125 0.674 4.250 0.674 4.375 0.674 4.500 0.674 4.625 0.674 4.750 0.674 4.875 0.674
83 4.000 0.682 4.125 0.682 4.250 0.682 4.375 0.682 4.500 0.682 4.625 0.682 4.750 0.682 4.875 0.682
84 4.000 0.690 4.125 0.690 4.250 0.690 4.375 0.690 4.500 0.690 4.625 0.690 4.750 0.690 4.875 0.690
85 4.000 0.699 4.125 0.699 4.250 0.699 4.375 0.699 4.500 0.699 4.625 0.699 4.750 0.699 4.875 0.699
86 4.000 0.709 4.125 0.709 4.250 0.709 4.375 0.709 4.500 0.709 4.625 0.709 4.750 0.709 4.875 0.709
87 4.000 0.719 4.125 0.719 4.250 0.719 4.375 0.719 4.500 0.719 4.625 0.719 4.750 0.719 4.875 0.719
88 4.000 0.729 4.125 0.729 4.250 0.729 4.375 0.729 4.500 0.729 4.625 0.729 4.750 0.729 4.875 0.729
89 4.000 0.739 4.125 0.739 4.250 0.739 4.375 0.739 4.500 0.739 4.625 0.739 4.750 0.739 4.875 0.739
90 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
91 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
92 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
93 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
94 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
95 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
96 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
97 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
98 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750
99 4.000 0.750 4.125 0.750 4.250 0.750 4.375 0.750 4.500 0.750 4.625 0.750 4.750 0.750 4.875 0.750