Over the weekend, Terry Savage wrote an article for theStreet.com extolling the benefits that seniors who are interested in a reverse mortgage will receive from the recently passed law known as The Housing and Economic Recovery Act of 2008. The main advantages that seniors will receive are lower origination fees and higher loan amounts across the country. Terry has always been a big fan of reverse mortgages and these changes may make the product more palatable for those seniors that have larger homes or are concerned about the high costs. The bill does not lower the mortgage insurance premiums and that protection will continue to remain at 2% of the value of the home which will protect the Department of Housing and Urban Development. Ultimately, the American taxpayer would have to foot the bill if FHA lowered the insurance premiums so that is not likely to be changed in the near term.
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