PIA-Primary Insurance Amount – Reverse Mortgage Glossary
According to the Social Security Administration:
The PIA is the sum of three separate percentages of portions of average indexed monthly earnings (AIME). The portions depend on the year in which a worker attains age 62, becomes disabled before age 62, or dies before attaining age 62.The PIA is the sum of three separate percentages of portions of the average indexed monthly earnings. The “bend points” of the PIA formula are the dollar amounts that govern the portions of the average indexed monthly earnings. The bend points in the year 2006 PIA formula, $656 and $3,955, apply for workers becoming eligible in 2006.
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Cary North Carolina Reverse Mortgage Lenders
Town of Cary NC
Yet again, Cary North Carolina has proven to be one of the country’s most safest places to live with low crime rates compared to the rest of the country. It’s no wonder that for the past 7 years Cary has seen its number of residents rise.
There are many local reverse mortgage providers in Cary North Carolina. With the explosion of families both young and old Cary is an ideal place to find a qualified HECM lender.
Cary Reverse Mortgage Lenders:
American Reverse Mortgage? 3900 Merton Dr, Raleigh, NC? – (919) 782-6003?
1. What is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. FHA’s HECM provides these benefits. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.
The House’s Proposal Concerning Reverse Mortgages
House appropriations committee
The House’s Proposal Concerning Reverse Mortgages
This month Congress will have to set up a committee to discuss the Bills, and come to some kind of a decision. The House’s version was passed in August. It decided that HUD would have to operate without any subsidy – even though a subsidy was not needed before. Earlier discussions had said it would be necessary to subsidize it at a cost of $798,000 because of the rise of housing prices and the economy. The House also reduced the principal limits by about 10% in order to compensate for the lack of subsidy.
A second issue was the lending limit which decided who would be eligible for a reverse mortgage. The current figure of $625,500 was set last year because of the economic problems. This was a raise from $417,000. The House wants to extend the current limits to the end of 2010.
The Senate’s Answer for Reverse Mortgages
The Senate’s version takes a different approach. Instead of making HUD operate within last year’s budget, it proposes that $288 million to given to help reduce the deficit. In addition, HUD will be required to reduce the principal limit by 5%. All new reverse mortgage loan commitments will have an additional
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