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February 24, 2009
The U.S. Department of Housing and Urban Development published Mortgagee Letter 2009-07, which officially raises the national limit for Home Equity Conversion Mortgages from $417,000 to $625,500 for the balance of 2009.
The new limit took effect on the date of publication, February 24, 2009.
“This increase will allow homeowners with higher value properties the opportunity to take advantage of a federally insured program”, says John Brodrick, President of Your Home For Lifesm a Westwood, Massachusetts company which specializes in reverse mortgages. “Until now if you had a home worth more than $417,000 you were capped at how much equity could be accessed. This increase is a positive step forward as more and more seniors identify the reverse mortgage as an important financial planning tool”.
The Home Equity Conversion Mortgage allows homeowners 62+ to convert a manageable portion of home equity into tax free cash. The equity may be converted to a lump sum, credit line which can be drawn upon as needed, or a monthly payment stream. There is no repayment required for as long as the homeowner remains in the property, pays their taxes and insurance and reasonably maintains the property.
npr All Things Considered Nov. 1, 2008
featuring John Brodrick, President, Your Home For Lifesm
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