Changes expected for HECM reverse mortgages would negatively impact seniors. The Administration’s proposed Fiscal Year 2011 budget for HUD would increase the ongoing mortgage insurance premium on HECM's from 0.5 percent to 1.25 and reduce principal limit factors.
If congress approves of the proposal, it will take effect October 1, 2010. Impact on borrowers will be a higher expected calculating rate resulting in less money in the homeowner's pocket and higher mortgage insurance costs adding to the loan balance. Seniors and concerned family members may want to ask their representatives in congress not to increase mortgage insurance premiums and lower the amount they can receive. It is important that reverse mortgages continue to be a reasonable option for accessing equity and helping seniors maintain their qualify of life.
For further information, contact meat reversemortgagesofnevada.com!
Great post Maggie, they are coming after everything now, it is scary.