Why NOW is the time to take a Reverse Mortgage
There are a few compelling reasons to take a Reverse Mortgage right now as opposed to waiting:
1) Reverse Mortgage Interest rates are at their lowest EVER. The amount that you qualify for depends on three factors, age, value of the property and the interest rate. Rates for some products are below 4 Percent! Rate will probably not be this good for a long time.
2) The proliferance of new products gives many borrowers many more choices than they ever have had. Many of these products may not be offered in the future and some lenders have already started to phase some products out.
3) Home prices are going down in the vast majority of the country. This means that taking a loan (where you make no payments) should be done as soon as possible or you will probably get less in the future. Obviously, refinancing a regular first mortgage shgould also be done as soon as you can, but for Reverse Mortgages, where your monthly payment FROM the lender(if you choose this method) is set forever at closing, there are big consequences in a declining home market.
I was going to post today why I believe that the "housing crisis" is going to get worse for a few more yaers, but it is too long for today. I'll post it tommorow.
Comments(2)