Boston Globe journalist Tom Kelly writes that while job cuts and dwindling investment accounts continue to plague wage-earning households, many seniors continue to wonder how long their once-healthy retirement funds will provide them with the cash needed for their leisure years.
He points to reverse mortgages and how some good news arrived recently for older homeowners who continue to make mortgage payments on their primary residence.
"This is a great opportunity for seniors to tap into additional funds to offset losses they may have experienced in the current economic environment," said Sarah Hulbert, president of Senior Financial Corp., a reverse mortgage lender. "There are a great number of seniors in homes valued significantly over the old limit of $417,000 limit who will be able to maintain or enhance their standard of living through the implementation of this new loan limit."
Darryl Hicks, vice president of the National Reverse Mortgage Lenders Association, a nonprofit trade group based in Washington, D.C., said there is anecdotal evidence that reverse mortgages are helping seniors to avoid foreclosure, but the organization has no hard data to support the claim. NRMLA expects even more activity with the new loan ceilings as seniors look for ways to escape high monthly mortgage payments.