A reverse mortgage is an easy solution for the one who is House rich but cash poor. It is an easy way for the elderly people to stay in their homes and have their bank pay them to stay in their home. After the recession hit, not only the retirement investments took a major hit, but also the value of the houses has also gone down significantly. Retirees look at reverse mortgages as one way to make up the difference. But is Reverse Mortgage the best resort for seniors? It all depends, as the financial experts say.
The reverse mortgage, it pays you and hence it works differently. It is available regardless of your current income. The amount that one can borrow depends on the age, the current interest rate, and the appraised value of the house or FHA’s mortgage limits for that area, whichever is less. Generally, the more valuable your home is, the older you are, and the lower the interest, the more you can borrow. You don’t make payments, because the loan is not due as long as the house is your principal residence.
You invest a lifetime and a big amount to own a house, and what better could one expect when the same house pays you back. You do not have to compromise with a depreciated living style or move to a smaller house, when your source of income has frowned. On one hand while you get to stay in your own house of dreams, at the same time you get paid for it. Planned with a meticulous approach, keeping in mind all the aspects of the term, REVERSE MORTGAGE can prove to be THE BEST RESORT FOR SENIORS.
While you have one of your greatest asset, your home, which can be used to borrow loan against its equity, you also remain the owner of the house. Also the recent reforms in the scheme have introduced laws for the spouses as well. The spouses now can continue to live in the house, in case of death of one of the house members.
A precise knowledge and know how of the curriculum can help the elderly to stay tension free in their houses, after retirement. The house will pay you back till the time you stay in it, provided you take care of the taxes and insurance expenses. Financial advisors can help you calculate the best worth of your house and your decision to go for a reverse mortgage can prove to be right.
Some scammers send deceptive info about reverse mortgages for the elderly and hence need is to keep a caution against the same. Reverse mortgages can also be structured as a lump sum payout up front or – what experts said is an increasingly popular option – as a home equity line of credit, drawn on as needed.
If you are a reverse mortgage expert and are looking for clients who would qualify for one and would be interested in getting a reverse mortgage then you should reach us at www.inspirecs.com or call one of our sales representatives at 1-800-986-9315 EXT 101