Saint Augustine, Florida (PressExposure) November 21, 2008 -- Senior over the age of 62 can now borrow up to the new lending limits that until now excluded many senior homeowners from maximizing the money that received. Until November 8, 2008 the limits on Reverse Mortgages was set by counties in each state which had financial restrictions as to amounts. Now there is one limit and that is $417,000. This change has had a major impact on the amount of Reverse Mortgages that are eing done today. Even people who had previously received a Reverse Mortgage are now going back and refinancing and receiving more money at the higher limits. Senior's have to know that there is help out there for them in these trying times. Seniors all over the U.S. are seeing their life saving and investments depleting rapidly as of this writing some people that we have talked to have lost as much as 70% of the money they had worked so hard to save. For a person who is one a fixed income this is devisating to say the least.
With a Reverse Mortgage a senior can tap into the equity that had built up over the years that they have owned the home. In many cases they have a small amount that they paid for the home and now they can tap into it and get a large sum of money at one time or receive a monthly amount. The other part of this program is the Credit Equity account. This where they can take all of the proceeds or a postion of the money and place it in an interest earning credit equity account that earns .50% over the effective rate on the loan. This account can be drawn against at anytime they need capital for any reason.
There is another change that is going into affect on January 1, 2009 this is a big one for seniors who want to sell their home and move into something that is better suited for their needs at this time in their lives. Before if a senior wanted to buy home and use a Reverse Mortgage they had to purchase the home first in cash and then apply for a Reverse Mortgage to get the capital back which in many cases that meant two closing. Now as of January 1, 2009 seniors can now purchase a homeusing a Reverse Mortgage as the primary mortgage. The amount they can finance is on the basis of the age of the youngest (that must be at least 62 years of age) and the appraised value of the home. These two issues will determine how much of a down payment will have to be made. If the appraised value is much higher then the purchase price they maybe able to purchase the home with (NO MONEY DOWN) THe most important issues are that there is No Income and No credit Quailifying and they will not have to make mortgage payments for the rest of their lives. If they have a home that they are selling they would be able to keep all of the proceeeds as their nest egg. Also if they are a couple who has lived in their home for two of the last five years and their primary home and they have up to $500,000 in capital gains it is TAX FREE!!!!!!
So if you think that there is light at the end of the tunnel there is and it is looking you right in the face a way to live through the toughest economic times over the last 80 years, and when that happened there was no Reverse Mortgages. So think and then act go to http://www.seniorconsumerreport.com or call