Since October 1, it’s a little harder to get a reverse mortgage and there are new limits on how much can be taken out the first year.  This is designed to tap home equity slowly and steadily and help seniors stay in their homes as they age. Time was, borrowers could pull out all the available cash at once, and they were encouraged by lenders who made more money that way.

Borrowers now have to prove that they can afford to pay property taxes and insurance over the life of the loan, or that amount will have to be set aside—taken out of the monthly payment, for instance, or charged to the credit line.

The maximum amount of cash the borrower has access to still depends on the home’s value, the prevailing interest rate, and the age of the youngest borrower. Beware: couples who borrowed on the age of the older borrower only (to get more) often left the younger spouse homeless when the older spouse died.

For nearly 30 years, Mike Nickerson has owned and managed a small, full-service accounting practice in the Midcoast. He holds a bachelor's degree in accounting from University of Southern Main and a master's degree in financial planning from Bentley University.

He is a past board member and president of the Maine Society of Certified Public Accountants and currently serves on the Maine Board of Accountancy.

An aged rock musician, Nickerson now finds musical enjoyment playing upright and electric bass in a variety of bands spanning folk to jazz music genres. He and his wife have three grown children, and they enjoy their free time hiking, kayaking, golfing, bicycling and motorcycling.

http://www.nickersonpa.com/