President Bush recently passed a Housing Bill that has a definite impact on the reverse mortgage laws in this country (something discussed here in the past). For those people who haven't closely read about this topic, here are the seven major things that you need to know regarding reverse mortgage rules under the new law:
1. Remember that you will be relinquishing equity in your home.
2. The amount available to borrow has been increased with the new law but is still limited to between $400,000 and $600,000 depending on the area where the home is located.
3. Know that there are fees attached. These were previously exorbitant but have now been moderated. They are still there and still somewhat high.
4. You still are required to get reverse mortgage counseling before obtaining the loan.
5. The law limits the ability of predatory lenders to oversell you on the product but there is still some risk that this may take place so be aware of aggressive lending practices.
6. Remember that you must still continuing paying house costs like the property taxes on the home even after getting a reverse mortgage.
7. Know what will happen when you sell the home.
Question of the Day: Do these seven points cover everything that you need to know about how the reverse mortgage is impacted by the new Housing Bill?
