Declining Home Values Motivate Seniors To Get Reverse Mortgages Now

10/17/2007

posted by N. Sioris

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If you are a senior homeowner considering taking out a reverse mortgage you need to understand the importance of the value of your home. The amount of money that you will be able to receive from a reverse mortgage directly relates to the value of your property. If your home is declining in value, as most real estate across the nation currently is, you should seriously think about getting your reverse mortgage application in process sooner rather than later.

The longer you wait to apply for your reverse mortgage, have your property appraised and get the loan closed, the more chance you have of your property declining in value. If your property value drops, the amount of money you will be eligible for also drops.

Three main variables determine the amount of money you can get from a reverse mortgage. Number one is your property value in proportion to your equity or loan balance, if any. Number two is your age. And number three is the current interest rate.

At the present time, two of the three factors mentioned above are working against you. Property values are declining and interest rates are rising. Both of these factors reduce the amount of money you will be offered on a reverse mortgage.

So the message is; if you know that you are seriously interested in getting a reverse mortgage, don't wait, get started today.