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Laredo Reverse Mortgage
According to Wikipedia, Laredo is the county seat of Webb County, Texas, located on the north bank of the Rio Grande in South Texas, across from Nuevo Laredo, Tamaulipas, Mexico. According to the 2007 census estimate, the city population was 233,152. Laredo is part of the Laredo-Nuevo Laredo Metropolitan Area with an estimate population of 718,073. Laredo’s economy is based on international trade with Mexico. It is the largest inland port in the United States. Most major transportation companies have a facility in Laredo. Laredo’s location along the southern end of I-35 close to the manufacturers in North Mexico promotes its vital role in trade between the United States and Mexico.
Laredo Reverse Mortgage Limits
There are many reasons a homeowner in Laredo may choose to obtain a Laredo reverse mortgage. The most common used program is the HECM (home equity convertible mortgage) through the Department of Housing and Urban Development (HUD) and insured by the Federal Housing Administration (FHA). This program allows Laredo seniors to obtain the most from their home’s equity after they have reached the age of 62. Other factors that will play into the amount of your proceeds in a Laredo reverse mortgage include the interest rate and value of the home. In fact, age has an appreciative factor to it-the older the borrower, the more money he or she will be able to obtain.
Although age, appraised value and interest rate play into the formula to determine how much of a Laredo reverse mortgage you can obtain, the most important factor is the national lending limit set by HUD. There is currently a nationwide limit of $625,500 that is in effect through the end of 2009 when Congress will need to evaluate whether they want to extend this amount, revert back to the previous limit of $417,000 or approve something in between.
Laredo Reverse Mortgage – What can I get
The most important thing to remember is that Laredo reverse mortgage limits are only as good as the appraised value of the property. Even though the national limitations are currently $625,500 you will only receive the amount your home appraises for. A senior homeowner will receive anywhere between forty and seventy percent of his home’s equity keeping in mind this will vary depending on the lender, the age of the borrower and the interest rate. Another factor that will affect how much actual cash a borrower will receive is any other mortgages and/or liens he may have on the home at the time he applies for a Laredo reverse mortgage. All other mortgages/liens attached to the subject property must be cleared before the borrower will receive any kind of proceeds – the cash a senior receives is from the equity in the home which means any outstanding mortgages must be paid before any funds are disbursed.
Even though the current maximum is still $625,500 there is a reduction of ten percent of the qualifying amount that went into effect on October 1st. The purpose of this reduction is to help finance the 498 million subsidy bill President Obama financed in order to protect the Laredo reverse mortgage lenders from losing money in the event of a continued decline in home prices. This is the first time in the history of reverse mortgages that HUD has needed to implement a program like this one.
Thank you for information about Laredo reverse mortgage.
Laredo Links:
Laredo City, Laredo Seniors
