Is Now the Time for a Reverse Mortgage?
Image by Alex E. Proimos via Flickr
Many seniors are lamenting the hit taken to their retirement accounts and other investments. As a result, they are looking for a little extra cash to help them ride out this recession while not depleting the principal in investment accounts. One of the ways to do this is through a reverse mortgage. And, with conditions starting to improve a bit, some seniors can get a little more in terms of a reverse mortgage. Golden Gateway Financial offers this information in a recent press release:
New legislation temporarily increased the reverse mortgage limit available to homeowners in 2009 to $625,500. This means that many seniors can now extract even more equity from their home as cash in a reverse mortgage. At the same time, the latest S&P/Case-Shiller Home Prices Indices showed that home prices are once again beginning to climb. Together, these two factors have provided seniors with a short window in which they can potentially earn more from their available equity than before and more than they might be eligible for next year.
However, it is important to be careful when getting a reverse mortgage. Interest charges can be very high, as can other fees. It is also important to realize that when the house is sold, or if you no longer live in it as a primary residence, the loan has to be paid back — it is a mortgage, after all. This means that the proceeds of the sale must be used pay off the loan, or some other payment schedule must be arranged.
At any rate, before deciding on a reverse mortgage, it is important to consult with a trusted and knowledgeable advisor who can help you determine the best course of action for you. It may be that a reverse mortgage is just the thing — or you may be better served with some other financial product or service.
![Reblog this post [with Zemanta]](http://img.zemanta.com/reblog_e.png?x-id=ccb3b1a7-56f7-4834-8512-89dabb389b33)
August 12th, 2009 at 4:34 am
[…] Is Now the Time for a Reverse Mortgage? Image by Alex E. Proimos via Flickr Many seniors are lamenting the hit taken to their retirement accounts and other investments. As a result, they are looking for a little extra cash to help them ride out this recession while not depleting the principal in investment accounts. One of the ways to do this is through […] […]
August 25th, 2009 at 8:20 am
[…] Is Now the Time for a Reverse Mortgage? Image by Alex E. Proimos via Flickr Many seniors are lamenting the hit taken to their retirement accounts and other investments. As a result, they are looking for a little extra cash to help them ride out this recession while not depleting the principal in investment accounts. One of the ways to do this is through […] […]