We have seen a handful of new reverse mortgage lenders and reverse mortgage brokers using a heavy “debt consolidation” pitch to push more consumers into reverse mortages. Reverse Mortgages can be a great tool for debt consolidation however certain steps need to be followed to insure you don’t repeat your previous actions and go back into heavy debt, because at that point you won’t have your house to bail you out.
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.
The new lending limits for Reverse Mortgages are now in effect. Any Reverse Mortgages that get started after today will be able to participate in the most important change in the history of government sponsored Reverse Mortgages.
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 passing of The Housing and Economic Recovery Act of 2008, new Reverse Mortgage lending limits are set to take effect at the end of the year. This will mean that more money for individual homes will be available.
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
