Seniors Tax Protest: Tax Appraised Value & Reverse Mortgages
Protesting tax appraisals can be a strategic move for the majority of homeowners. If you are approaching your golden years and considering a reverse mortgage now or in the future, you may want to give it thoughtful consideration.
Homeowners age 62 and over may be eligible for a reverse mortgage. This mortgage product insured by the US Department of Housing and Urban Development allows homeowners to eliminate their mortgage payment. Reverse Mortgages allow homeowners to maintain favorable tax treatment, benefit from potential property appreciation while eliminating mortgage debt. No income or credit qualifications apply however; the amount you are eligible for is connected to the value of your home. It is a collateral based loan and if the homeowner has reduced the taxable value of their property at the time of application it can have an effect on the amount the owner can qualify for.
There are serious dollars at stake. President Barak Obama signed a new bill called the American Recovery and Reinvestment Act of 2009 which has increased the loan limit from $417,000 to $625,500. This increase allows many senior homeowners living in higher valued homes to receive more money with an FHA reverse mortgage than they had in the past. This change has a direct effect on many urban dwellers in Austin that have experienced appreciating values in recent years. Not to mention, the update may be temporary through 2009. The $625,500 limit will revert back to $417,000 at the end of 2009 unless Congress passes another bill to extend or increase the limit.
If you are in the process of applying for a reverse mortgage be careful about appealing your property taxes at the same time. As with all significant financial decisions, we recommend you do your research and talk with qualified professionals before signing on the dotted line.Contributing writer: Mary Alice Keyes, Austin Urban Grid LLC and Mortex Lending, 512-965-5854, firstname.lastname@example.org
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