Good news folks:

The Economic Stimulus Bill, President Obama’s plan, named the American Recovery and Reinvestment Act he recently signed into law temporarily raises the national loan limit on HECM reverse mortgages to $625,000!

This is very important for several reasons:

• First, for homeowners who have properties with higher values, especially those with existing mortgage balances that exceeded currently available limits, they now have a solution which frees them from monthly mortgage payments.
• Second, senior borrowers with high valued homes may now be able to receive much more money to use for whatever needs they might have…including retiring higher existing debt.

Let me give you an example of the impact the new limits can have:

A 62 year old homeowner with a property valued at $625,000 would, under the old limit, receive approximately $238,000.

With the new increase in lending limits, that same homeowner would now be entitled to nearly $360,000. That’s an increase of $122,000 dollars!

Presently, this increase in lending limits is available only in 2009. It will take Congressional Approval to extend the new limits beyond this year.

So, if the previous limitations didn’t fit your financial strategies, now is the time to call us here at the Reverse Mortgage Learning Center to find out how this exciting news can benefit you.

Written by Gary Witt, Senior Reverse Mortgage Advisor