Today seniors are experiencing the recession in every aspect of their livelihood. Rising living and housing costs and potential cuts to government assistance mean less social security and pension earnings to take care of their increasing health needs. Unfortunately, many homeowners are not aware of the opportunity that the reverse mortgage provides them.
At no penalty to the borrower, great interest rates, and nothing to pay back, the reverse mortgage is no less than free money as a return for the previous years spent paying a mortgage. In this recession, reverse mortgages become a lifeline to seniors, helping them save their home and make the most of their retirement years.
The reverse mortgage has been around for decades, helping senior homeowners who are struggling to manage their rising medical bills and other expenses during their retirement on top of mortgage payments. The program allows these homeowners to convert equity in their homes to a tax-free income, without increased mortgage payments, and without the risk or reality of having to sell their home or sign over the title. But what happens to even the most stable and reliable of programs in the midst of an economic recession? When it comes to Reverse Mortgages, they only gather strength and continue to support borrowers.
The U.S. Department of Housing and Urban Development raised the reverse mortgage limits to $625,500 to help stimulate the economy and provide immediate relief to senior homeowners facing unaffordable payments. Now is the greatest time in history to qualify for a Reverse Mortgage. The implementation of this limit has increased financial options for senior homeowners during this difficult time and will significantly ease the burden of retirement during the economic downturn. The new limit is nearly double that of the limit from before the last increase in 2008, which consisted of a jump from $362,790 to $417,000.
The new national lending limit increase arrives as part of the American Recovery and Reinvestment Act of 2009 (ARRA), and will be in effect until December 31, 2009. The new limit applies to loans which have already been approved in 2009 as well as loans that were pending in 2008 as long as they had not receive credit approval before the new year.
Now is the greatest time to sign up for a Reverse Mortgage, with the lowest rates in history and a time where financial stability is most important. Seniors simply cannot afford to overlook the benefits of a Reverse Mortgage during an economic downturn. Seniors may be in the prime of their life, but become more financially vulnerable and less resilient when outside circumstances threaten their retirement funds. Seniors who own their home may not realize they are sitting on a nest egg that could allow them more financial freedom in a recession than in a time of economic abundance. For more information visit Reverse Mortgages 360.
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