With the new year comes a change in reverse mortgage programs. As before, you must live in the home as your primary residence and must complete a financial assessment. But the maximum loan amount has risen from $822,375 to $970,800 as of January 1, 2022. The loan amount is determined by the appraised value of your home or $970,800, whichever is less. I saw that some lenders are now advertising no closing costs. Since closing costs can be high compared to other forms of loans, this could be significant to some borrowers. Since there is no free lunch, I assume the interest rate charged on no-cost reverse mortgages is higher or the closing costs that are paid are limited.
