Value Limits for Reverse Mortgages May Drop...

By
Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768
https://activerain.com/droplet/52Pw

Value Limits for Reverse Mortgages May Drop to

Previous Levels...

Last December, The Department of Housing and Urban Development extended the $625,500 maximum appraised value limit on Home Equity Conversion Mortgage (HECM), or the Reverse Mortgage, effective until December 31, 2013.

This represents an 150% increase over the statutory loan limit of 417,000.

Under this new extension, (which began in 2009 under the American Recovery and Reinvestment Act and has been extended for the past three years in hopes of continuing a steady economic growth) senior homeowners living in higher priced homes--above $417,000--receive significantly more money than before.

Good news for senior homeowners hoping to apply for a reverse mortgage!

The following example sums up the situation:

A borrower with a property valued at $650,000 can receive a Principal Limit of about $415,000. Under the previous (and future) limit of $417,000, that same borrower’s benefit would be about $275,000. A difference of $140,000 or 1/3 less! If there is no extension of the $625,500 value limit.

So what's the hold up?

Homeowners themselves!

Whether from fear, the effects of the media or simple waiting, homeowners aren't taking advantage of the opportunities that are ripening in the reverse mortgage market,  especially coupled with lower-than-ever expected interest rates.

Expected interest rates can potentially rise above the current 5.00% though, closing the gap for homeowners looking to get the most out of their reverse mortgage program.

There has never been a better time to consider a Reverse Mortgage. There are many options available to you with a reverse mortgage and plenty of ways to use it during retirement.

At PS Financial Services we're ready to make it happen. Give us a call at (888) 845-6630 or email us at info@PSReverseMortgage.com. We do not pressure those who inquire, we're just here to help.

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Information and content in this blog is original to Phil Stevenson

Please click the "SUBSCRIBE TO MY BLOG" button on the right, and receive more Traditional and Reverse Mortgage information in Florida and other parts of the US & Puerto Rico.

 

Phil Stevenson

PS Financial Services

Owner and Principal Mortgage Originator

Certified Reverse Mortgage Professional (CRMP)

LO #365768

NMLS #968090

Cell: 888.845.6630

Miami Mortgages & Florida Mortgages

Copyright © 2013 by Phil Stevenson & PS Financial Services, LLC

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