New News for the Reverse Mortgage in West Palm Beach, Florida

The government has made the changes, and these changes help protect the practicability of the Reverse Mortgage program for the Boca Raton area. In the recent past, accessing home equity has been increasingly difficult. Most likely in the near future, it may well become even harder to get to the equity in your home.

In a world where retirement needs are increasing due to the large number of baby boomers retiring and the fact that people are living longer in the face of the ever rising health care costs, this access is necessary. While the retirement system is shrinking and the Social Security benefits being below adequate levels necessary to live, a decrease in employer provided pensions has been shifting to personally funded 401(k)s, and the modesty of these balances are apparent in today’s market. We have felt this pinch even in Boca Raton, Florida.

It is essential to be prepared and leverage your assets as best as you can. Reverse mortgages allow homeowners age 62 and older to borrow against the equity in their house. This loan pays off the current loan plus any accumulated interest when a person deceases, moves out, or sells their home. The Reverse Mortgage in Boca Raton, Florida has become increasingly popular. It provides loans on assessed home values up to the Federal Housing Administration current limit of $625,500. Through this program, the government has designed the loan and provides insurance for the borrower and the lender. This is for a fee of course. This insurance protects against the risk of the lender no longer being able to make the contracted payments. In addition, this insurance protects the lender against the risk that the loan balance exceeding the property value.

The changes we spoke of prior are new regulations brought about by the government. These regulations put a limit on the amount that can be withdrawn in the first year, and a portion of the mortgage costs will now be based on the amount withdrawn. These new regulations also reduce the maximum amount of home equity that a borrower can access, but it will still depend largely on the age of the borrower, the value of the home, and the interest rate offered. Good thing our values are increasing again here in Boca Raton.

By examining all sources of income and credit history, Mortgage Lenders will be able to make sure that borrowers have the ability to make their required tax and insurance payments over the life of the loan. Homeowners must have a certain level of monthly income left over after paying all expenses, including taxes and insurance, to qualify for this loan program. A cash set-aside may be required if a borrower falls short of this amount which will either be deducted from payments or charged to a line of credit in the event of the shortfall. This will help bring about stability in the Boca Raton housing market.

This is a positive move for the future of Reverse Mortgages. The limit on first-year withdrawals will reduce the likelihood that borrowers will spend their money and be left without a buffer to allow for future needs. The financial assessment will help ensure that the people taking out a Reverse Mortgage will not be forced into insolvency by failing to pay their taxes or insurance.

Creating a standard is a move in the right direction to protect those who utilize this loan program. Slightly higher fees and slightly lower loan amounts will take pressure off the insurance fund allowing for a better customer experience. The Reverse Mortgage program needs to exist. To allow access to equity of their homes they worked so hard to build, the Reverse Mortgage is helping meet the financial needs of today’s experienced population. Please contact your Boca Raton Mortgage and Real Estate Specialist Christian Penner for more information on Reverse Mortgage.

Questions, Comments or For more information you can email Christian Penner at TheMortgageTeam@ChristianPenner.com or visit us online at www.ChristianPenner.com or you can call us directly at: 561-316-6800

Christian Penner - ReverseMortgageSolutionsNow.info http://reversemortgagesolutionsnow.info/new-news-for-the-reverse-mortgage-in-boca-raton-florida/
New News for the Reverse Mortgage in Boca Raton, Florida

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Christian Penner - ReverseMortgageSolutionsNow.info http://reversemortgagesolutionsnow.info/new-news-for-the-reverse-mortgage-in-boca-raton-florida/
New News for the Reverse Mortgage in Boca Raton, Florida