US House Plans to Improve Reverse Mortgages

The House is considering legislation that will improve the increasingly popular reverse mortgage program.The Expanding American Homeownership Act of 2006, H.R. 5121, will allow older homeowners access to greater home equity. Improvements on the federal program include creating a national loan limit for FHA Home Equity Conversion Mortgages, which account for 90% of reverse mortgages in the U.

S.A single national limit will help homeowners living in areas with high-priced homes. Current lending limits vary by county, ranging from $200,160 to $362,790. The legislation would mirror Freddie Mac's conforming limit at $417,000.The Senate is expected to introduce a companion bill in the near future.

The Reverse Mortgage Program allows seniors to convert the equity from their homes into retirement income.The Act would also implement a HECM for Home Purchase, which would allow seniors to purchase newer housing. It would also remove the existing cap on the number of HECM loans that the FHA can insure."Taken together, these proposed changes would greatly benefit homeowners who are considering a reverse mortgage as part of their retirement planning," said Peter Bell, President of the NRMLA.

"A single national loan limit would be especially helpful. It would benefit homeowners living in high-valued homes in counties where the FHA lending limit is much lower, which limits the amount of proceeds available from a reverse mortgage. We applaud the Department of Housing and Urban Development and Congress for proposing to correct this problem.

".Reverse mortgages are simply loans that enable homeowners 62 or older to borrow against the equity in their homes, without having to sell the home or take on new monthly mortgage payments.The loan can be used in any way, taken out as a lump sum, fixed monthly payment, line of credit or a combination of ways. The loan amount depends on the current interest rate, the borrower's age and the value of the home.A reverse mortgage is not collected upon until the borrower moves out of the home permanently.

The repayment amount cannot exceed the value of the home.Once the loan is repaid, any remaining equity in the property is distributed to the borrower or the borrower's estate.A senior does not have to own his or her home free and clear to receive a reverse mortgage. Reverse mortgages are often used to retire existing debt on a property.

.Martin Lukac(http://www.MartinLukac.com), represents http://www.RateEmpire.com and http://www.

1AmericanFinancial.com, a finance web-company specializing in real estate/mortgage market. We specialize in daily updates, rate predictions, mortgage rates and more. Find low home loan mortgage interest rates from hundreds of mortgage companies!.

By: Martin Lukac

Iraq War

Whats the Fuss About - A few days ago I watched an interesting debate on CSPAN on the US-India Civilian Nuclear Cooperation programme.

China Rises Think Again - Multi-polaristic lateralists are tripping over each other like Inspector Clouseau and salivating at the mouth Cujo style in the hope that China will challenge American hegemony.

American Morality A Glimmer of Hope on the Horizon - Has the United States lost it?s basic principle of morality? Has the United States moved away from the guiding principles that this country was founded on? A single paragraph describes these basic principles and it is the meaning of this paragra.

He Will Confirm A Covenant With the Many The US Israel Strategic Alliance Part II - DRIVING THE U.

Since When is It Okay to Lie to the United States Congress - Since when is it okay to purport and misrepresent truth to the United States Congress? Recently the Federal Trade Commissions Consumer Protection Division's Anti-SPAM Group put forth a report claiming SPAM was on the decline by 9%.