Everyone wants to know what the “stimulus bill” has in it for them. Well, thanks to that bill, there is at least one good thing for anyone considering a reverse mortgage. The maximum loan amount for a reverse mortgage has been increased from $417,000 to $625,500. While this may not thrill everyone, there are many seniors who have enjoyed more expense homes but were kept out of the reverse mortgage option due to low loan limits. I speak to seniors every week and many of them were pretty well off in their retirement, however, with the stock market plummeting and their CD rates down around 2%, they find themselves looking for options to finance their retirement. On top of that, with the possibility of GM and Chrysler going into bankruptcy, retired auto workers are looking at a possible reduction in their incomes or benefits. If you would have asked these folks a year ago, no one ever dreamed there might be an issue with their retirement.
Let’s look at an example: A couple who are 75 and 73 respectively who live in a home valued at $550,000. Under the old rules, that couple could have received $275,000 in tax free reverse mortgage proceeds (after all expenses were paid). Now, with the new limit, they can receive $360,872 in benefits. This is an increase of over $85,000.
Maybe it’s time to contact your Reverse Mortgage Specialist and get a free-no obligation quote to see what you might be eligible to receive. Everyone’s situation is different so it’s best to get the facts based on your scenario. Reverse Mortgages are available to any senior over 62 who has sufficient equity and who lives in their own home. There is no income or credit score requirement to qualify. It’s your money – make it work for you !
Brenda Wheeler, Reverse Mortgage Specialist, M & I Bank Indianapolis