Is Your New Mexico Community Reverse Mortgage Friendly?
The table below shows the variance between interest rates charged on Home Equity Conversion Reverse Mortgages(HECMs)and housing appreciation rates in various areas throughout New Mexico.
Higher positive variances indicate that home values rose at a faster rate than the HECM monthly-adjusting loan rate for the same period of time. Conversely, low or negative variances should be reason for concern since this could mean your net home equity is being diminished not only by a growing reverse mortgage balance, but by stagnant or declining home values. Five-year data likely provides a more reliable indication of the "reverse mortgage friendliness" of any given area since year-to-year data abberations are smoothed.
As with any such tool, use only as a guidepost. Individual neighborhoods (even indiviual homes) can appreciate or depreciate at rates much different than the overall community. Also, there are many complex aspects to reverse mortgages not accounted for here.
Figures are updated quarterly (most recent update made 2/28/08 reporting 4th Quarter 2007 results).
| One-Year | Five-Year | ||||||
|---|---|---|---|---|---|---|---|
| State | Metro Area | Home Apprec | HECM Rate | Vari- ance | Home Apprec (Avg/Yr) | HECM Rate | Vari- ance |
| NM | New Mexico, (NM) | 5.39 % | 6.03 % | -0.64 % | 11.24 % | 4.74 % | 6.50 % |
| NM | Las Cruces, NM | 5.96 % | 6.03 % | -0.07 % | 11.81 % | 4.74 % | 7.07 % |
| NM | Santa Fe, NM | 4.99 % | 6.03 % | -1.04 % | 11.46 % | 4.74 % | 6.72 % |
| NM | Albuquerque, NM | 4.66 % | 6.03 % | -1.37 % | 11.26 % | 4.74 % | 6.52 % |
Searching for a reverse mortgage lender? Be sure to check out the New Mexico reverse mortgage lenders directory.
