Reverse mortgage is becoming a popular choice among the senior citizens now a days. A big fact which supports this is that many senior citizens are heading towards their retirements without much money in the bank. Recently a survey among 1500 senior citizens was done, in which all the members were aged 50 years or more and only twenty said that they had more than $200000 of savings to burn after their retirement. Half of the people said that they have saving which they would be able to burn in the first ten years of their retirement. There are many other reasons that have led to increase in the number of people opting for a Reverse Mortgage program in order to access the right to use the equity in their home. If you are a homeowner and your age is above 55, there is a chance to avail up to 50% of the value of your property with reverse mortgage loans.
Some of the advantages for which more citizens have now started to opt for this could be summarized as follows:
- The very persuasive and favorable cause for the increasing popularity of Reverse Mortgage is that it gives an ease to age in one’s own house than moving to a new one. This has a huge sentimental aspect supporting it.
- There is no monthly payment during the term of the mortgage. There could be certain accrued costs like mortgage insurance premium, interest charges, and lenders service fee which needs to be paid when the loan is paid off.
- The eligibility of an individual for a reverse mortgage loan is calculated basis the worth of the house, and not his monthly income.
- There is no containment that Lenders cannot go to your heirs for repayment of your loan if the house sells for less than what it was borrowed
- Homeowners can fold the upfront costs and the respective fee to reverse mortgage, rather than paying them off the beginning of the mortgage.
- Interest rates are either fixed or adjustable, however in most cases these are adjustable
- Money received can be used for any purpose. It could be home repair or maintenance, long term care, paying off some debt or any kind of medical emergency.
- The income from a reverse mortgage is not taxable; moreover it does not affect the Medicare benefits or social security.
- Homeowners have an option to keep the title to their homes until they pass away, move, sell their home, or reach the end of their loan term, one of the poignant aspects once again.
- As the age of the owner increases, the home equity increases, ie the amount that the home owner receives also increases.
However there are a few disadvantages but everything comes with pros and cons. According to the latest surveys on the mortgage markets, there is a great boom expected in the years to come with 77 million baby boomers retiring.
For the mortgage lenders there is a huge market ahead and a chunk of retiring individuals who look forward to a reverse mortgage loan. There are multiple lead generation services. Inspirecs is one of the market leaders in the business with an expert team and double verified lead bank for Reverse Mortgage, and if you are looking to get more information on our Reverse Mortgage Live Transfer Leads, feel free to give us a call at 1-800-986-9315 Ext 1 Today.