The Specifics – Part 2 of Reverse Mortgages

The specifics and eligibility requirements: 

• Homeowners/borrowers must be age 62 or older and occupy the property as their principal residence
• Property must be a single-family or a two-to-four unit dwelling
• No income, employment or credit qualifying restriction.
• Property must be owned free and clear or have a remaining mortgage balance which can be paid off by a reverse mortgage
• Property must meet HUD minimum property standards. In some cases, home repairs can be made after the closing of a reverse mortgage.
• Townhomes, detached homes, condominium units, planned unit developments (PUDs) and some manufactured homes are eligible

Maximum Loan Amount

The maximum loan amount is based on the following factors:

• Appraised value of the home
• Age of the youngest homeowner
• County in which the property is located
• Current interest rate

Generally speaking, the older you are, the more your home is worth and the lower the interest rate, the more you’ll be able to borrow.

Previous posts in this “Applying For Your Loan” series:

• What The Heck Is A Reverse Mortgage? – Part 1 of Reverse Mortgages

How The Stock Market Rally Was Terrible For Mortgage Rates

The Dow Jones Industrial Average surged 631.86 points in the last three hours of trading yesterday as traders piled into equities.

Fueling the rally?  The bond market. 

For as much as stocks gained today, bonds lost.  Including mortgage bonds.  The dramatic sell-off created a huge swing in mortgage rates and erased nearly all of 2008’s rate improvements.

This is one reason why it pays to be aware of your home loan.  That way, when markets change and a doorway to payment reduction opens, you can quickly step through it. 

As yesterday illustrated, with mortgage rates, opportunity is often fleeting.

With stocks poised to rise again today, it should likely happen at the expense of bonds.  Mortgage rates are trending higher, too.

(Image courtesy: The Wall Street Journal Online)