A reverse mortgage can feel a bit tricky to calculate and can leave you with clammy hands and cold sweats. But depending on your needs, an Alaska reverse mortgage may be a great option for supplemental income. There are four things you should look at when considering a reverse mortgage.
- Age of the youngest borrower
- The value of the home
- Current interest rates
- Ability to manage debt
The Factors for AK Borrowers
The minimum age for a reverse mortgage borrower is 62, however the younger spouse’s age is considered because regulations do not allow the non-borrowing spouse to be evicted in the case that the borrower moves out or passes away. Additionally, the age of the initial borrower calculates the amount of money you can borrow against your mortgage.
The value of the home is also taken into consideration when determining the amount of money that the lender can offer. The home equity is assessed to determine the percentage offered.
It is always important to stay up-to-date on current interest rates when determining how much you would like to borrow, it’s also important to factor in receiving a lump sum instead of accruing the loan over time.
The last factor that is examined is the ability of the Alaska homeowner to manage debt. That is why it is important to review your credit score to make sure it is up to par with what the lender would be looking for. Be sure to pay bills on time, have multiple credit cards open and use half or less of the credit available to you.
Types of AK Loans
Additionally, it is important to know what types of loans are available when determining which type of reverse mortgage is best for you. The first and most common reverse mortgage loan is through the FHA-backed HECM (home equity conversion mortgage). The borrowing limits for the HECM is calculated through the value of your property and the principal limit factor (PLF). The PLF is a percentage multiplied by the maximum claim amount to determine the initial amount available to a potential reverse mortgage borrower. However, there are two other reverse mortgages that you should consider depending on your needs.
The second is a jumbo reverse mortgage. These are carried out in the private industry and have their own set of rules when it comes to loans. These types of mortgages are more flexible than HECMs and can be available if you don’t qualify for the FHA program. However, these programs tend to be more costly than their government funded counterparts.
Finally, there is the single purpose reverse mortgage, this type of mortgage can only be used for one purpose. The purpose normally falls under property tax payment, energy efficient renovations or home repairs. These mortgages are offered to low-income buyers through a local non-profit or government agency.
In all reverse mortgages, interest rates are commonly lower but will vary between lenders.
Be sure to consult a licensed reverse mortgage lender to determine what type of loan fits your needs.
Alaska Reverse Mortgage Companies
Lender | Loans | Total Principal Limit |
WELLS FARGO | 398 | 89,927,650 |
AMERICAN ADVISORS GROUP | 170 | 48,858,500 |
ONE REVERSE MORTGAGE LLC | 127 | 33,917,050 |
IREVERSE HOME LOANS LLC | 35 | 11,354,110 |
SEATTLE MORTGAGE COMPANY | 30 | 4,364,150 |
LIBERTY HOME EQUITY SOLUTIONS INC | 28 | 8,045,000 |
FINANCIAL FREEDOM SENIOR FUNDING CORP | 21 | 4,319,200 |
FINANCE OF AMERICA REVERSE LLC | 17 | 6,595,000 |
ALLIED HOME MORTGAGE CAPITAL CORPORATION | 16 | 4,486,550 |
PROFICIO MORTGAGE VENTURES LLC | 16 | 5,338,500 |
MUTUAL OF OMAHA MORTGAGE INC. | 15 | 6,296,000 |
STAY IN HOME MORTGAGE INC | 14 | 3,190,250 |
METLIFE BANK NATIONAL ASSOCIATION | 12 | 4,105,200 |
AMERICAN PACIFIC MORTGAGE | 12 | 3,488,125 |
GENWORTH FINANCIAL HM EQUITY ACCESS INC | 11 | 3,218,500 |
COUNTRYWIDE BANK FSB | 10 | 2,650,700 |
IREVERSE HOME LOANS CORPORATION | 10 | 4,460,000 |
AXIA FINANCIAL LLC | 10 | 3,259,500 |
BANK OF AMERICA | 9 | 2,219,550 |
LONGBRIDGE FINANCIAL LLC | 8 | 2,997,000 |
Since 2012
Lender | Loans | Total Principal Limit |
AMERICAN ADVISORS GROUP | 170 | 48,858,500 |
ONE REVERSE MORTGAGE LLC | 78 | 21,702,150 |
IREVERSE HOME LOANS LLC | 31 | 9,965,110 |
LIBERTY HOME EQUITY SOLUTIONS INC | 25 | 6,755,000 |
FINANCE OF AMERICA REVERSE LLC | 17 | 6,595,000 |
PROFICIO MORTGAGE VENTURES LLC | 15 | 4,888,500 |
MUTUAL OF OMAHA MORTGAGE INC. | 15 | 6,296,000 |
IREVERSE HOME LOANS CORPORATION | 10 | 4,460,000 |
AMERICAN PACIFIC MORTGAGE | 9 | 2,733,125 |
LONGBRIDGE FINANCIAL LLC | 8 | 2,997,000 |
Recent Reverse Mortgage Rates in Alaska
Current Rates
Date | Fixed Rate | Adjustable Rate |
2019-01-01 | 4.56% | 4.11% |
2019-03-01 | NA | 4.02% |
2019-04-01 | NA | 4.72% |
2019-05-01 | NA | 4.42% |
2019-06-01 | NA | 4.83% |
2019-08-01 | NA | 5.45% |
2019-10-01 | NA | 3.46% |
2019-12-01 | NA | 3.62% |
2020-01-01 | NA | 4.64% |
2020-03-01 | NA | 4.12% |
2020-05-01 | NA | 2.80% |
2020-06-01 | NA | 3.27% |
2020-07-01 | NA | 3.53% |
2020-08-01 | NA | 3.68% |
2020-09-01 | NA | 3.05% |
2020-10-01 | NA | 3.54% |
2020-11-01 | NA | 2.78% |
2021-01-01 | NA | 2.71% |
2021-02-01 | NA | 3.18% |
2021-03-01 | 3.06% | 2.61% |
2021-04-01 | NA | 2.76% |
2021-05-01 | NA | 2.51% |
2021-06-01 | NA | 2.65% |
2021-08-01 | 3.18% | 2.25% |
2021-09-01 | NA | 2.24% |
2021-11-01 | 3.43% | 2.81% |
2021-12-01 | NA | 1.89% |
2022-01-01 | NA | 2.12% |
2022-02-01 | NA | 2.97% |
2022-03-01 | NA | 2.68% |
2022-05-01 | NA | 3.78% |
2022-06-01 | NA | 4.50% |
2022-07-01 | NA | 4.50% |
2022-08-01 | NA | 5.42% |
2022-11-01 | NA | 6.50% |
2022-12-01 | NA | 7.72% |
2023-01-01 | NA | 8.01% |
2023-02-01 | NA | 7.35% |
2023-03-01 | NA | 7.56% |
2023-05-01 | NA | 7.17% |
2023-06-01 | NA | 7.52% |
2023-07-01 | NA | 7.22% |
2023-08-01 | NA | 8.07% |
2023-09-01 | NA | 7.19% |
2023-10-01 | NA | 7.70% |
2023-11-01 | NA | 7.91% |
2023-12-01 | NA | 8.05% |
2024-01-01 | NA | 7.63% |
2024-02-01 | NA | 7.38% |
2024-03-01 | NA | 7.32% |
2024-04-01 | NA | 7.49% |
2024-07-01 | NA | 7.75% |
2024-08-01 | NA | 7.68% |
2024-09-01 | NA | 6.81% |
Historic Rates
Date | Fixed Rate | Adjustable Rate |
2016-01-01 | NA | 3.76% |
2016-02-01 | NA | 4.04% |
2016-03-01 | NA | 3.73% |
2016-04-01 | NA | 3.94% |
2016-05-01 | 5.06% | 4.05% |
2016-06-01 | NA | 4.13% |
2016-07-01 | NA | 4.04% |
2016-08-01 | NA | 4.26% |
2016-09-01 | NA | 4.24% |
2016-10-01 | NA | 4.76% |
2016-11-01 | NA | 4.46% |
2016-12-01 | 5.06% | 4.75% |
2017-01-01 | NA | 4.77% |
2017-02-01 | NA | 5.08% |
2017-04-01 | 5.06% | 4.57% |
2017-05-01 | NA | 4.45% |
2017-06-01 | 5.06% | 4.42% |
2017-07-01 | NA | 4.22% |
2017-08-01 | NA | 4.44% |
2017-09-01 | NA | 4.69% |
2017-10-01 | NA | 4.45% |
2017-11-01 | NA | 4.64% |
2017-12-01 | NA | 4.61% |
2018-01-01 | 4.75% | 4.73% |
2018-02-01 | NA | 4.61% |
2018-03-01 | NA | 4.69% |
2018-05-01 | NA | 4.72% |
2018-06-01 | NA | 5.09% |
2018-07-01 | NA | 5.00% |
2018-08-01 | NA | 4.79% |
2018-09-01 | NA | 4.57% |
2018-10-01 | NA | 4.85% |
2018-11-01 | NA | 5.25% |
Top Cities in Alaska by Total HECM Loans Originated
Rank | City | Zip | Total |
1 | WASILLA | 99654 | 77 |
2 | ANCHORAGE | 99508 | 74 |
3 | ANCHORAGE | 99507 | 60 |
4 | ANCHORAGE | 99504 | 59 |
5 | PALMER | 99645 | 50 |
6 | ANCHORAGE | 99502 | 45 |
7 | ANCHORAGE | 99516 | 44 |
8 | ANCHORAGE | 99515 | 42 |
9 | ANCHORAGE | 99517 | 42 |
10 | ANCHORAGE | 99501 | 39 |
11 | WASILLA | 99623 | 35 |
12 | HOMER | 99603 | 33 |
13 | JUNEAU | 99801 | 32 |
14 | EAGLE RIVER | 99577 | 31 |
15 | SOLDOTNA | 99669 | 30 |
16 | KENAI | 99611 | 29 |
17 | KETCHIKAN | 99901 | 28 |
18 | NORTH POLE | 99705 | 28 |
19 | FAIRBANKS | 99701 | 24 |
20 | FAIRBANKS | 99709 | 24 |
21 | KODIAK | 99615 | 23 |
22 | ANCHORAGE | 99518 | 22 |
23 | ANCHORAGE | 99503 | 21 |
24 | SITKA | 99835 | 18 |
25 | WILLOW | 99688 | 15 |
26 | STERLING | 99672 | 14 |
27 | CHUGIAK | 99567 | 12 |
28 | ANCHOR POINT | 99556 | 10 |
29 | TALKEETNA | 99676 | 7 |
30 | BIG LAKE | 99652 | 7 |
Alaska HECM Counselor & HUD Offices
Housing Counselors
MONEY MANAGEMENT INTERNATIONAL – ANCHORAGE, AK.
417 BARROW ST
ANCHORAGE, AK 99501-2515
(866) 232-9080
http://www.moneymanagement.org
Housing and Urban Development (HUD) Office
3000 C. Street, Suite 401
Anchorage, AK 99503
(907) 677-9800
https://www.hud.gov/states/alaska/
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