Geposted am Wednesday 8 October 2008
Reverse mortgage are hot items these days. Demographics, inadequate retirement funding, and problems in the traditional mortgage market have combined to take marketing of reverse mortgage products to senior homeowners a booming business. There is now the new reverse mortgages lending limits. The new nationwide limit is to be $417,000 and the target effective date is November 1st. That’s a target date, not a set deadline. This is really important information and may come as a relief to many senior households that are concerned about their ability to obtain access to cash or credit in this very troubled marketplace. The first group that will see this as great news were the folks that looked into getting a reverse mortgage but were short to close if their county lending limit with the reverse mortgage calculator was limiting their access, meaning they would have needed to come to the closing with cash; something they were short of to begin with. Roughly 60% of seniors originating reverse mortgages are paying off other mortgage debt to free up monthly cash flow. Some found that falling home prices did not allow them enough equity to pay their old mortgage off and they continued to suffer while this bill was negotiated knowing there was a silver lining in the cloud…behind a cloud.
If your home is worth more than the current limits for your county, you could be looking at quite an increase in available access to cash from your home’s equity.