A reverse mortgage is an increasingly popular consumer loan for senior homeowners at least 62 years of age with over 50% equity in their primary home. It allows these senior homeowners to tap into the home equity that has been built up over the years. There are no monthly mortgage payments but homeowners are still responsible for paying property taxes, insurance, and maintenance. The repayment of the loan is deferred until the homeowner dies, sells or moves out of the home. Because there are no monthly mortgage payments and homeowners can generally receive their home equity as tax-free cash. Additionally, some also qualify for a line of credit that increases every year & can come in handy for paying unexpected expenses or just enjoying life. This particular type of loan has seen over 1 million seniors take advantage of it. Some scenarios a reverse mortgage could be useful are: Loss of spouse or Loss of income/job, low retirement funds, don't qualify for traditional cash out mortgage or don't want a monthly mortgage payment, don't want to be stuck with a mortgage payment that you eventually can't afford, just want to utilize your equity before you pass on.
Most dismiss this great option because they don't know enough about it or heard bad things about it but that was prior to 1989 when president Reagan made the reverse mortgage a insured loan & regulated it. I have seen this save peoples retirement & allowed a less stressful lifestyle. I have also seen people decide against a reverse mortgage & then struggle with a traditional cash out mortgage down the road. Unfortunately, when they call back they no longer qualify for a reverse mortgage because they don't have enough equity now. I can explain all the details if you want to know more. Don't let myths or lack of knowledge stop you from what may be your best financial option. Call for your free no hassle consultation.
