FHA’s New Update to Reverse Mortgage Debenture Interest Rates

The FHA has finalized updates to reverse mortgage debenture interest rates, effective September 28, 2024, impacting aging homeowners seeking to access home equity. The changes aim to enhance flexibility, stabilize the market, and improve consumer outreach. The new rules simplify rate calculations and align them with current economic conditions, potentially lowering costs for seniors. While these updates are seen positively, challenges remain, including misconceptions about reverse mortgages. Educational initiatives will be crucial for informing seniors about their options and benefits.