Reverse Mortgages Set To Grow
As the U.S. economy on a macro level and consumer loans on a micro level desperately seek sound footing, one sector of the mortgage market continues gain momentum. In a recent report by the Wall Street Journal, we see that the recent passing of federal regulation of reverse mortgage limits increasing should afford seniors some much needed relief in accessing their home’s equity. Starting November 1st, the limits will jump and fees will drop.
Up to now, those applying for the federally insured loans that make up about 90% of this market could borrow against the lesser of either their home’s value or a limit that ranges from $200,000 to $362,790, depending on location. But the limit is slated to rise to $417,000 nationwide under the new rules. The older the homeowner, the more he or she can generally borrow.
Those borrowing more than $200,000 also will see their fees decline. While homeowners currently pay a 2% origination fee on these loans, under the new law they will pay 2% on the first $200,000 and 1% on the rest, with the total origination fee capped at $6,000.
Now if housing could only stabilize long enough for the major banks to filter out quality loans from poor performing loans, many seniors would find the access to funds that they are desperately seeking. Lower fees are good for all parties. But a friend of mine recently sent me an article, asking if the government should be helping “wealthy” seniors at all.
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Related posts:
- Australia’s Reverse Mortgage Market Continues To Grow
- HUD finally raises HECM/Reverse Mortgage Limits to $417,000
- First American, First to Score Reverse Mortgages
- New HUD Rule Allows Reverse Mortgages For Home Purchase
- Refinancing Existing Home Equity Conversion Mortgages (HECM) and Revision
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[...] Reverse Mortgages Set To Grow By Charles D As the US economy on a macro level and consumer loans on a micro level desperately seek sound footing, one sector of the mortgage market continues gain momentum. In a recent report by the Wall Street Journal, we see that the recent … Reverse Mortgage and Loan News - http://reverse-loans.net/ [...]
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