Wednesday, October 9, 2013

3 Reasons To Get A Reverse Mortgage Before The End Of The Year

3 reasons to get a reverse mortgage
If you're a senior living in the State of Utah you've probably seen the TV commercials, gotten a post card in the mail, or maybe even spoken to someone about the reverse mortgage program.  If you haven't taken advantage of it, the next 2 1/2 months may be the last good opportunity.  In fact, you may not even qualify by the end of the year! So if you're looking for a good reason to get a reverse mortgage right now: here are 3 of them.

Reason #1: More Changes

The changes that were mandated in the Reverse Mortgage Stabilization Act of 2013 have partially been enacted by lowing the amounts you can qualify for, but the biggest change has yet to happen. Many seniors get a reverse mortgage because of the ability to access some money without the need to make a payment. The reverse loan has a reputation of being a loan of last resort, but there are a surprising number of people who get it and don't really need it, they just like having access to their equity because they don't know what the future will hold.

Starting in January 2014 all reverse mortgage applicants will be required to take a "means" test.  The means test is supposed to show how much the borrower needs the loan as well as their ability to keep up on house repairs, taxes and insurance.  If the borrower doesn't really need the money, then they will not be able to qualify for as much if any.  If you don't want "big brother" to tell you what you can do with your own money, then getting started on the reverse mortgage by the end of the year is the thing to do.

Reason #2: Increasing Property Values

After the financial crisis started a few years ago everyone's property values took a hit.  If you have looked at a reverse mortgage within the past few years and didn't qualify, you may now!  The median home prices in Salt Lake County have gone up 17% from last year and you may be surprised to see how much your home is now worth.  Websites such as Zillow.com can be a good option to see how much your home has increased in value.  Once you have an idea, try our free reverse mortgage calculator to see if you qualify.

Reason #3: The Holidays

No this is not like the commercials you see on TV saying to get a reverse mortgage and then go on a cruise or vacation and blow all your money.  In fact we recommend you don't use the money from the reverse on things like that.  Why the coming holidays is a good reason to get a reverse mortgage though is to save you money.  How many of us on a fixed income end up buying gifts on a credit card and then take most of the next year to pay it off just in time to do it all again?  Well by getting a reverse mortgage you will have your current mortgage paid off thus eliminating the monthly payment and increasing your cash flow.  With this new monthly cash flow you can purchase presents and maintain your holiday traditions without loading up your credit cards.  With a traditional mortgage or a reverse mortgage you accrue interest that needs to be paid; but by following this plan you now stop accruing credit card interest as well...saving you money!

If you have been considering a reverse mortgage, or know anyone who has, please share this post and also our website reverseutah.com.  We will be happy to go over all the reverse mortgage options with you and make sure your questions are answered. Want to talk to someone live?  You can also call us toll free at 1-800-431-9250.