Benefits of Reverse MortgagesLet's look at the benefits of Reverse Mortgages, by thinking of it as a retirement planning tool, because that is what it is. And that is the main advantage of a Reverse Mortgage If you had plenty of money to retire you would not be here, so let's consider advantages of reverse mortgage, reverse annuity mortgages, because like an annuity you can make an election to receive a fixed payment as long as you live in you home. So a Reverse Mortgage allows you to maintain your financial independence, while allowing you to remain in your home and retain ownership. No Monthly Mortgage Payments You need not pay back a reverse mortgage, one of the great advantages of reverse mortgage loan, until you decide to move, sell your home, or your estate is settled. This is one of the great benefits of reverse mortgages. This article by Peter Gomes gives you benefits of reverse mortgages,and advantages of reverse mortgage. Should you get a reverse mortgage after 60? by Peter Gomes A reverse mortgage is perhaps the best financial innovation that can help seniors above 60. It is a kind of loan that is provided to seniors who are house rich and cash poor. It allows seniors who are above 60 to take steps to secure their homes with a decent interest rate and never make monthly payments on it. With such a mortgage, you don’t need to make payments and you can stay in your home at the same time, not losing your home ownership rights. The loan would be repaid after your death by your heirs by either paying cash or by selling off your house. Now the question asked by most seniors is that should you get such a loan after 60. Well, the answer would undoubtedly be an ‘yes’ because it is safe to take such a mortgage for seniors. Read on to know why. 1. Because you do not require monthly payments: The reverse mortgage is a home equity loan that requires a high level of take up to 60% of the home value. However the borrower is never required to make monthly mortgage payments as in a traditional mortgage. Instead the lender pays you either a lump sum amount or in small monthly payments.
2. Because it is 100% federally regulated: This kind of mortgage loan for seniors should always be considered because it is 100% federally regulated. The US Housing and Urban Development (HUD) and FHA has designed and set all HECM mortgages. The HECM mortgages are the most popular among this kind. A fixed amount on closing costs, property rights and interest rates apply for all consumers.
3. Because it is a non-resource loan: This kind of home loan is taken against the home equity. Thus it is a non-resource loan. The assets of the house are never risked in such a mortgage. While repaying the loan, if it decreases in value, the lender has to remain satisfied with the proceeds gathered through selling the house only. He cannot adjust the remaining price by running after the personal assets of the borrower.
4. Because it allows pre-mortgage counseling: Before you take such a mortgage loan from your lender, you will be provided with a free mortgage counseling wherein the counselor will analyze your financial condition and check whether or not you require taking such a loan. This is a fantastic service which is mandatory for all candidates.
5. Because it protects the rights of the consumers: Taking such a mortgage will keep you protected against other lenders. The bank is the position of the first mortgage which protects the house from all other loans and creditors. It also allows you to sell the house at all times and also makes sure that you can stay in your house life long.
Thus, if you are a senior and are worried about whether or not to consider taking a reverse mortgage, consider the safety features of such loans that makes them so popular among seniors.
There is no cash required for closing as typically closing costs are simply added to your loan’s balance. Is a Reverse Mortgage right for you. Ask and we will point you in the right direction.
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