Higher loan limits for reverse mortgages - what does it mean?

Around Novevmber 1, 2008 the FHA loan limits are increasing to $417,000 across the country. This means that the reverse mortgage proceeds will now be computed using the first $417,000 of home value. Previously in Hampden County, the proceeds were computed by using only the first $207,860 of home value. (different counties had different loan limits ranging from approximately $200,000- $362,000)

This new higher loan limit will more than double the available proceeds for some homeowners of higher value homes. Only a portion of the home value is available and is determined by the age of the youngest borrower, the interest rate, and the home value.

Because of this higher lending limit more and more people should be investigating how a reverse mortgage can mesh with other assets to create a sound financial future.

For more information contact
Flynt Lincoln, CAPS, CSA
Reverse Mortgage Consultant
Webster Bank
413-237-4653

Reverse mortgage information

A reverse mortgage can be a wonderful tool for retirement and financial planning. There are an awful lot misconceptions that are still floating around. Getting accurate information is the only way you can make an intelligent decision about the various reverse mortgage options that are available to you.

If you'd like information or have questions please contact me or send a blog.