Although the Federal Reserve again raised the short-term interest rate yesterday May 4, 2022, the impact on a reverse mortgage loan is both positive and negative.
As interest rates increase, the amount that you qualify to receive at application from the reverse mortgage decreases. However, your current loan balance which needs to be paid off to create additional cash flow, can still be considered as before. The same rules apply including prequalification of the youngest borrowers age, having enough home equity and satisfying a financial assessment. Prequalification standards have not changed; how much you can borrow has been impacted.