Now is the Time to Finance With a Reverse Mortgage!

Now may be the best time for homeowners to take advantage of the Home Equity Conversion Mortgage or reverse mortgage. Soon, FHA will change the amount that borrowers qualify for under this program.
The principal limit factors (or PLFs), which determine the amount of money a homeowner can receive from his or her loan based on age and interest rates, were already reduced at the beginning of this year. David H. Stevens, assistant secretary of Housing for the Federal Housing Administration, said that in order for the program to successfully continue in 2011, the annual mortgage premium will have to increase from 0.5% to 1.25% and the principal limit factors will have to be reduced at least another 1-5%, depending on the homeowner’s age.