Reverse Mortgage Scams talks about other problems to watch out for, including:

Being charged for information
Shady and non-accurate counseling
Overpriced home repairs
and more

Visit Reverse Mortgage Scams for full detailed reports.

We always like to show the pros and cons of reverse mortgages, and we hope you found this post helpful.

People who argue that the cost of the reverse mortgage is high often forget that the senior still has a mortgage payment. Once the reverse mortgage is in place the mortgage payment goes away. A senior with a $800 dollar a month mortgage payment now can apply that money to other needs.

He makes a good point that even with the higher costs, seniors still are elminating a large debt and even a large monthly payment.

To speak with a Reverse Mortgage Specialist, call 1-888-973-8377. You can also use an online Reverse Mortgage Calculator to see how much you qualify and what the costs would be. CLICK HERE!

One key to remember that isn’t always told by some brokers/lenders. You still are 100% responsible for your property taxes and insurance. When looking for debt consolidation, it is important to factor in what you will be paying for your taxes and insurance on a yearly basis and factor that into your number crunching.

Reverse Mortgages are a wonderful and can be great at reducing or eliminating other high interest rate debt, however it is important to really number crunch your required monthly outlay before jumping in.

To speak with a specialist, call 1-888-973-8377.

These Reverse Mortgage lending limits mean that your home will be able to have its entire value taken into account when recieving your Reverse Mortgage proceeds.  The minimum lending limit set for the entire nation is $417,000.  This means that if your home appraises for $450,000 only $417,000 of the value will be included in the system.  This is standard for every lender in the nation, as the Reverse Mortgage is Federally regulated program.

This is a vast improvement to the program.  Before these changes the minimum was as low as $200,000 and the Reverse Mortgage was not a realistic option for many seniors looking to improve their retirement.

With the end of IndyMac bank as a Reverse Mortgage Lender and their remittance of the Financial Freedom Jumbo Cash Advantage, there has been a definite need for product that will perform for large value homes.  This new lending limit provision in the Housing Act will allow for the HECM to give a much greater percentage of the home’s appraised value.

You will be able to enjoy these new lending limits either at the end of November or perhaps at the end of December 2008

Most homes that are over $200,000 will see an increase in available funds rise anywhere from 20 to 80% from this new limit change. There are Cons. The increase in limits will be enacted in January. They may also mean Higher Closing Costs.

However, most of the changes that the new FHA HUD Lending Limits will be very positive. They will help fill the void left by the Jumbo Reverse Mortgage ending. It will allow higher value homes to have a proper porportion of funds available.

By Jumbo loans, I mean, a loan program that is designed to preform for home values of 600,000 and up. The HECM is a fine product but would not provide a comparable percentage of equity. It was just too low.

The good news is that there is now a ray of hope. The US Senate just passed a huge FHA housing bill that will allow for an across-the-board raising of lending limits. This means that higher value homes will now be able to take out more equity with a Home Equity Conversion Mortgage, or a Reverse Mortgage to us common folks. It should help bridge the gap until someone invents a new jumbo program for us. (I hope its really soon!)

I beleive that this couple would be more apt to discuss the Cons of Reverse Mortgages instead of the Pros of Reverse Mortgages!!!

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For example, the loan fees associated with reverse mortgages are higher than those of most conventional mortgages. That’s because most reverses require mortgage insurance in the event the senior outlives the value of the home. Financial Freedom pioneered a no-fee jumbo reverse that satisfied some of the higher-end customers while the federally insured Home Equity Conversion Mortgage also made huge strides in reducing fees and improving a once-bulky process.

These fees are however rolled in to the transaction so this is not an out of pocket expense the senior home owner.

For a full breakdown of fees associated, please call 1-888-973-8377.

This site is dedicated to showing the Pros and the Cons of the Reverse Mortgage process. This site will show the benefits and the shortcomings of the process. The most important thing to remember of about Reverse Mortgages is that while this is a superior senior service that can benefit many seniors in financial need or create a terrific tax free source of investment capita for a better retirement, the Reverse Mortgage is not for everyone.

This site will post multiple links on information about the process, fees, structure, and closing of a Reverse Mortgage and will also outline several ways to best utilize the funds produced by the product. It will also illuminate some of the areas that senior borrowers will need to be well informed of, and some areas that will need to be avoided when conducting a transasciton of this sort.

Any questions can be answered very easily by calling 1-888-973-8377. Thank you!