Reverse Mortgages Get a Haircut
www.morningstar.com, November 5th, 2013
As you may or may not be aware, the Reverse Mortgage industry has gone through a significant makeover in the past year. While the basics of the Reverse Mortgage are still the same, additional regulations have been passed by the Federal Housing Authority as a direct response to the rate of home defaults going up. This has changed the amounts that you can qualify for and how you can receive your proceeds.
For those who are not familiar with the Reverse Mortgage program, it is a way for those of the age of 62 and over to cash in on some of the equity in their homes, and use that money in any number of ways. You must first use it to pay off your remaining mortgage balance or any liens secured by your home (if you have either of these) which can relieve yourself from having to make monthly mortgage payments. And if you have no mandatory financial obligations, you can have it broken down into monthly payments being sent to you, set up a line of credit that grows over time, or even put the money in your pocket for a rainy day and use it at your discretion.
Read the article at the link listed below to find out more about the new regulations and how they have changed the Reverse Mortgage industry.