The amount of money you can qualify for will be reduced October 1, 2010, therefore you shouldn’t delay any longer! If you are considering a Reverse Mortgage the ideal time to move is now before pending increases in annual mortgage insurance and a further anticipated reduction in Principle Limits take effect. How will these changes affect you? Simply put, higher fees and less money to you. There are several reasons to act now:
1. Low Rates – The lower the rate, the more money you receive. Today’s low rates are allowing borrowers to maximize the amount of money available to them in the program.
2. Principal Limit Factors – Principal Limit Factors are guaranteed to go down October 1, 2010 when HUD introduces its new Principal Limit Factors tables. Principal Limit Factors could go down even further if Congress fails to pass a reconciled appropriations bill which includes HECMs. When Principal Limit Factors go down, the amount of money available to you goes down.
3. Counseling – If you want to maximize the proceeds of the current HECM program, you need to act now. In the past, those borrowers who had FHA Case Numbers before the date of the change, received the proceeds of the program as they existed before the change. September 11, 2010 is the date for the change in counseling protocol and some are indicating counseling will slow. If counseling is not completed (with its more stringent rules) and an application has not been taken before September 30, 2010, there is little hope of getting an FHA Case Number before October 1, 2010. Get your counseling completed ASAP so an FHA Case Number can be secured before the deadline. Jeff Lewis, Chairman of Generation Mortgage, goes into further detail here http://reversemortgagedaily.com/2010/08/13/hecm-proceeds-may-decrease-in-october-says-lender/ regarding the proposed changes.
There are fewer than 45 days before the anticipated program changes occur. One of our Lenders has just announced an additional benefit to clients who are ready to close now. In addition to covering the upfront Mortgage Insurance Premium (MIP) and no Service Fees, they will also cover closing costs up to 1% of the Principal Limits. If you are considering a Reverse Mortgage the time to move forward is now as the cost of waiting may be substantial. Please call us @ 1-800-963-8011 to speak to one of our Senior Home Advisors.
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