The recent drop in interest rates is positively changing the reverse mortgage landscape. One of the key factors that determine how much you are eligible to borrow is the interest rate. That said, the next few months could be an opportunity to cash in with a reverse mortgage. There are three variables that control the amount of money you receive with a reverse mortgage: Age - You must be 62 or older, but the greater your age the more you qualify for Appraised Value -Your eligible amount is based on a percentage of your home value Interest Rate - The lower the rate, the more you are eligible for In some cases, today’s lower rates can help make up for the decrease in property values. Here’s sample of what’s available for a 73 year old with a $200,000 appraised value and an expected rate of 5.1%. The 73 year old could choose between $130,400 in cash or $818 per month for life. There would also be to option to choose a combination of lump sum cash and receiving a monthly check for life. The proceeds of a reverse mortgage are generally tax-free, and many reverse mortgages have no income restrictions. The max lending limit has now been raised to 417,000. With a $417,000 appraised value, the 73 year old could access net funds available approaching $280,000 or a monthly check of about $1,700 for life. According to AARP, the top 5 reasons seniors get a reverse mortgage are: 1.Pay off mortgage (20%) 2.Home repairs/improvements (18%) 3.Improve quality of life (14%) 4.Everyday expenses (10%) 5.Emergencies/unexpected (9%) There are options available with no out of pocket costs, and counseling from a HUD approved counseling agency is required prior to application. This helps ensure your safety and comfort in the decision making process. In light of today’s economic conditions, a reverse mortgage may be the right financial tool for you to use. That’s called â€Retiring in Styleâ€! About The Author: George Fisher is a Senior Mortgage Advisor with over 17 years of mortgage industry experience. His website at http://www.getmyreverse.com offers reverse mortgage for Ohio and Florida residents. Subscribe for a FREE monthly newsletter for seniors at seniorhelp@getmyreverse.com or at http://www.getmyreverse.com. For more information via a FREE 24/7 pre-recorded message Call 800-558-8757 x675.
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