Will Higher HECM Reverse Mortgage Lending Limits Expire In October 2011
The HECM reverse mortgage is the most popular reverse loan type taken by the American seniors, because it has benefits, which other loans cannot offer. The decrease of the maximum loan amount is a clear worsening in the terms, if it will happen.
1. The Limit Of The HECM reverse mortgage Is $ 625.500.
This temporary and increased limit was set at the end of 2009. The target was to give seniors better terms to get extra money for their living costs. The limit was lifted from $ 417.000 to $ 625.500 and now we have a danger, that the limit will go back to $ 417.000. This would be quite unfair and not reasonable, because the HECM reverse mortgage loan amount depends on three factors, on the borrowers age, on the appraised value of the home and on the level of the interest rate. Why would Congress lower the maximum limit?
2. It Is Estimated That The Loan Limit Will Drop.
The industry experts forecast, that the maximum amount of the HECM reverse mortgage loan will drop back to 2008 level. That means a drop of $ 208.500, which is a lot money, if we think that from the borrowers point of view.
3. A Senior Should Act Quickly To Get The Present Maximum.
If a senior has thought to take the HECM reverse mortgage loan, but postponed the decision, now it is the right time to start to act. If you belong to this group, you can start the process by visiting the counselor. If your target has been to loan the maximum amount, you can get $ 208.500 more, if you take the loan before October 2011. There may have been one problem.
The house prices have dropped significantly after the financial crises broke and the prices are still falling. This means, that the appraised home values are on the lower levels, which decreases also the loan amount. However, the forecasted decrease in the maximum loan amount is 33 points, which is more than the house price drops, in most cases.
And nobody knows, when the home prices start to incease again and when they will reach the healthy level. It will happen, but the timing between these two factors is no important. When the administration is preparing the change, it is obvious, that it will go through the Congress.
Of course everything can happen, but s wise senior, who wants the maximum amount will act now. This danger can offer a good kick, which makes the seniors to act. There are a group of thinkers, who think and think. That can become costly, if the truth is that they can lose over $ 200.000 just by postponing the decision.
One thing is the interest level. The mortgage interests have increased and will increase in the near future. By taking the loan before October a senior can get two benefits. He will get the higher maximum amount with the lower rate, especially if he succeeds to get a fixed interest rate.
1. The Limit Of The HECM reverse mortgage Is $ 625.500.
This temporary and increased limit was set at the end of 2009. The target was to give seniors better terms to get extra money for their living costs. The limit was lifted from $ 417.000 to $ 625.500 and now we have a danger, that the limit will go back to $ 417.000. This would be quite unfair and not reasonable, because the HECM reverse mortgage loan amount depends on three factors, on the borrowers age, on the appraised value of the home and on the level of the interest rate. Why would Congress lower the maximum limit?
2. It Is Estimated That The Loan Limit Will Drop.
The industry experts forecast, that the maximum amount of the HECM reverse mortgage loan will drop back to 2008 level. That means a drop of $ 208.500, which is a lot money, if we think that from the borrowers point of view.
3. A Senior Should Act Quickly To Get The Present Maximum.
If a senior has thought to take the HECM reverse mortgage loan, but postponed the decision, now it is the right time to start to act. If you belong to this group, you can start the process by visiting the counselor. If your target has been to loan the maximum amount, you can get $ 208.500 more, if you take the loan before October 2011. There may have been one problem.
The house prices have dropped significantly after the financial crises broke and the prices are still falling. This means, that the appraised home values are on the lower levels, which decreases also the loan amount. However, the forecasted decrease in the maximum loan amount is 33 points, which is more than the house price drops, in most cases.
And nobody knows, when the home prices start to incease again and when they will reach the healthy level. It will happen, but the timing between these two factors is no important. When the administration is preparing the change, it is obvious, that it will go through the Congress.
Of course everything can happen, but s wise senior, who wants the maximum amount will act now. This danger can offer a good kick, which makes the seniors to act. There are a group of thinkers, who think and think. That can become costly, if the truth is that they can lose over $ 200.000 just by postponing the decision.
One thing is the interest level. The mortgage interests have increased and will increase in the near future. By taking the loan before October a senior can get two benefits. He will get the higher maximum amount with the lower rate, especially if he succeeds to get a fixed interest rate.