By Middleman Matters

All you have to do is Google the term “reverse mortgage” and you’ll see that some in the media have written articles saying that they should be avoided.  And so, as I sat down to write this article, I did exactly that… I typed “reverse mortgage” into Google and started clicking on links, reading what came up from my search.

The first one I clicked on was published by U.S. NEWS/Money on December 11, 2012… under the ominous headline: 5 Reasons to Avoid a Reverse Mortgage.  However, since the author of this article is only identified as “FMF,” or a “Contributor,” there’s no way to find out who is providing the information or viewpoint.

Regardless, it appears under the U.S. News banner so I’m sure many would assume it to be a legitimate article, which is why I’m using it as an example of what shouldn’t be happening, but nonetheless is.

Read More Here…

You’ve spent decades diligently paying your home mortgage and building equity in your home, not only so you could continue to enjoy living in it, but as a means of investing for your future needs. That said, you don’t necessarily want to have to sell your home when you fall on hard times or reach the age of retirement. When you partner with a reputable reverse mortgage company like Reverse Mortgage Works to tap into the equity in your home, you can receive the funding you need while continuing to reside in your family home.

Of course, it’s smart to keep up with changes in the marketplace to ensure that you always receive the greatest benefits from your reverse mortgage, whether you previously refinanced or you’re looking into your options moving forward. With expert assistance from Reverse Mortgage Works you can learn all you need to know to make an informed decision. In the meantime, here are a few changes in the reverse mortgage industry for 2018 that you should know about.

Acquisition Debt is Still Deductible

Like many homeowners, you might be nervous about the The Tax Cuts and Jobs Act (TCJA) of 2017, especially if you heard the hubbub about home equity interest deductions being eliminated. However, if you have a reverse mortgage or are working with Reverse Mortgage Works to complete a reverse mortgage, you can breathe easy. It turns out acquisition debt, including refinanced home equity debt, remains deductible under the new tax plan.

The only caveat here is the amount of debt that may be deductible moving into 2018. If you took out a mortgage on or before December 15, 2017, the cap on deductible interest for acquisition debt is set at $1,000,000. If your mortgage was taken out after this date, the limit for interest deductions on acquisition debt will be reduced to $750,000.

Loan Limit Increase

If you’re interested in teaming up with Reverse Mortgage Works this year to take out a reverse mortgage, you’ll be pleased to hear that the Department of Housing and Urban Development (HUD) recently announced an increase to the maximum claim amount for federally backed reverse mortgages. For the 2018 calendar year, the maximum claim amount will increase to $679,650, a significant bump from the 2017 limit of $636,150.

Reduced Mortgage Insurance Premiums

This change to reverse mortgages actually went into effect late last year, but it will continue to benefit anyone seeking a reverse mortgage in 2018, which means now is a great time for Palm Desert residents to consider contacting Mark Anthony Erskine at Reverse Mortgage Works to see about tapping into the equity in their home. Whereas the upfront Mortgage Insurance Premium (MIP) was previously based on the amount of money being withdrawn from home equity, essentially penalizing anyone taking a large lump sum (over 60%, for example), new rules set a flat rate of 2% for all borrowers, regardless of the amount of the reverse mortgage.

In addition, ongoing MIP rates will decrease from the historical average of 1.25% to 0.5% for outstanding loan balances, potentially saving borrowers hundreds or even thousands of dollars annually. In other words, 2018 is the perfect time to contact Reverse Mortgage Works to find out how you can benefit from a reverse mortgage.