SwampFox

Financial Company Sees Loan Limit Extension as Positive

Submitted by: Holly Fisher on Jan 04, 2010 at 8:08 pm Tagged with: economy, homeowner, reverse mortgages Source: Step Ahead Inc.

CHARLESTON, S.C. – The boost reverse mortgages received as part of the stimulus package earlier this year is being extended through 2010 – proof, one local company says, that reverse mortgages can be a viable financial solution for older homeowners.

A reverse mortgage is a way for homeowners ages 62 and older to convert part of the equity in their homes into tax-free cash without having to sell the home, give up title or take on a new monthly mortgage payment.

As part of the 2008 Housing an Economic Recovery Act, Congress raised the maximum home amount senior homeowners could borrow against to $625,000 from $417,000. This opened up the program to people who had higher value homes and allowed them to gain access to money they then could put back into the struggling economy. Just last week Congress passed a resolution that extends the $625,000 limit through Dec. 31, 2010.

“This is great news for many senior homeowners with higher home values who might want to use the reverse mortgage to pay off an existing mortgage or supplement their cost for retirement living and long-term care,” says David Heilman, director of business development for Franklin Funding.

Franklin Funding specializes in senior home equity solutions, including the reverse mortgage. Reverse mortgages are often viewed with skepticism, and Franklin Funding readily admits it is not the right solution for everyone. Yet for many homeowners the reverse mortgage has been a bright spot in a bleak economy – a way to access cash to pay off their current mortgage, buy a second home or simply improve their quality of life during their retirement years.

“Home equity has become an asset that many will have to tap just like retirement accounts, stocks, bonds and savings in order to maintain their standard of living,” Heilman says. “This move by Congress to extend the limit speaks volumes for how well the program is helping.”

About Franklin Funding
Franklin Funding is a Charleston, S.C.-based financial services company that helps older adults throughout the state of South Carolina with financial solutions tied to home equity. Specializing in the reverse mortgage, a product that helps individuals 62 and older tap into their home equity with no monthly payments, Franklin Funding employees take care to act ethically and provide a personal touch to clients throughout this complicated and oftentimes emotional process. The company is active in the senior services community, advocating for issues in the aging population and participating as leaders and members of professional groups throughout the state. For more information about Franklin Funding, visit www.franklin-funding.com or call 843-762-2218 or toll-free 800-375-0351.