Issue 44.17
TIMES ARE GOOD, VERY GOOD! The stock market is reaching new highs, employment is strong, housing is appreciating faster than it has in probably the last ten years and Amazon seems to be taking over the retail world! We all hope that the economy continues to grow and strengthen for many years to come.
If you are retired and want to take advantage of economy’s strength, you may want to consider a reverse mortgage. Here are three reasons why:
1) INCREASED HOME VALUES – The higher your home’s value, the more cash you will have to supplement your retirement. This is the perfect time to take advantage of your home’s appreciation.
2) REVERSE MORTGAGE RATES ARE AT HISTORIC LOWS – FHA’s recent changes to the Home Equity Conversion Mortgage (HECM) or reverse mortgage program make interest rates more important than ever. Under the new rules, the lower the interest rate, the more you can borrow. Reverse mortgage rates are currently the lowest they’ve been in at least the last five years.
3) KEEP YOUR EQUITY LONGER
Equity is the cash that you receive when you sell your home after you’ve paid off your mortgage and closing costs. Many people want to leave the equity in their home to your heirs, or use it to pay for eventual assisted living.
Since you never make mortgage payments on a reverse mortgage, your loan balance grows over time, similar to a savings account. Your loan’s interest rate determines how fast your loan will grow.
Today’s low interest rates mean your loan will grow more slowly, helping you keep much more of your equity for a longer period of time.
In addition, FHA just reduced the rates on up-front and ongoing mortgage insurance premiums for reverse mortgages. These reductions are significant and also help you retain more of your equity.
While we all hope these good economic times last for many years to come, there are no guarantees. If you want to take advantage of today’s economic strength by tapping into your home’s appreciated value, then give me a call at 435-669-0009 and we can discuss your specific loan situation.
Veritas Funding (NMLS#25108) is an equal Housing Lender. This is not an offer of credit or commitment to lend. Loans are subject to owner/property qualification.