| Reverse Mortgage Loans - Important Reverse Home Mortgage Information |
| Articles - Mortgage |
|
In 1989 HUD, The Department of Housing and Urban Development announced the reverse home mortgage initiative, which is also know as the home equity conversion mortgage. This initiative was created to help seniors liquefy over 4 trillion dollars of equity earned by paying off a first mortgage.
In 1989 HUD, The Department of Housing and Urban Development announced the reverse home mortgage initiative, which is also know as the home equity conversion mortgage. This initiative was created to help seniors liquefy over 4 trillion dollars of equity earned by paying off a first mortgage. Seniors have recently shown great interest in obtaining these types of reverse loans. They are becoming more and more popular now for seniors who would like to plan for retirement but might not have the liquid capital to do so comfortably. Essentially, a reverse home mortgage will pay you to stay in your home and keeps paying as long as you remain in the home as a primary resident. With a reverse home mortgage seniors are able to freely spend these funds at their discretion. With the Social Security system failing it is more important than ever for seniors to access the equity in their home. In addition, the cost of health care and prescriptions continues to rise causing a heavy strain on the elderly population. More than 12.5 million seniors have this type of equity sitting in their first home mortgage. Many own their homes free and clear, and can access these funds through a reverse loan. With a traditional mortgage, homeowners make payments to the mortgage company monthly with interest over a set period of time. With a reverse home mortgage, the homeowner receives either a monthly payment, lump sum payment, or line of credit from the lender. As long as you reside in the home the loan will not need to be paid back. If you move or sell the home the paid funds your received through the reverse mortgage loan would be subtracted form the sale price of the home upon closing. You can only be paid up to the homes appraised value and will never be responsible to pay back more that the original equity in the home. Most seniors use these funds for living expenses, home improvement, medical payments or prescriptions, or to help make their retirement more comfortable. With a reverse home mortgage you can feel comforted in the knowledge that all the hard work you put into paying of your first home mortgage can be accessed now. These funds can help provide security and comfort that will support you in your senior years ahead. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Getting a Reverse Home Mortgage is easy when you have the right information. Visit ReverseHomeMortgage101.com for more Reverse Mortgage Information, including Interest Rates, Quotes and a full listing of Reverse Home Mortgage Lenders in your area. I've found this site to be an excellent resource for anyone interested in learning about a Reverse Home Mortgage. |