Reverse Mortgages – Are They A Good Idea For You?
Reverse mortgages are one of the biggest growth areas in mortgage
business. These mortgages offer older people the chance to get money based on the equity they have in their homes or apartments. When reverse mortgages are used, the lender pays the homeowner an agreed interest rate. The homeowner doesn’t have to pay the back payment, but can use the money any way they want. There are many reasons why these mortgages can be a godsend.
A reverse mortgage withdraws the cash held in equity in a home, giving the homeowner the funds they need. These
the funds are not returned, but at the end of the loan period, which is usually
upon death of the home owner or upon sale of the home, reverse mortgages
But why would anyone want a reverse mortgage? Why are Americans more and more
do you want to repay the mortgages? In many cases, these mortgages are great ways to get
the money they need. They can be used to pay medical bills. Reverse mortgages can be used to prepare for long-term care.
Many people secure reverse mortgages to enjoy life. They buy an apartment in
They take vacations and see the world. Maybe they want to buy a vacation
When they were first created, reverse loans were slow to take off.
Homeowners were reluctant to take advantage of these types of loans. Reverse mortgages, once they became popular and more people understood them, there are
become fast-growing loans. In 1989, the federal government began supporting the opposite
mortgage. The National Council on Aging promotes the reverse mortgage as
a great way to finance home modifications, medical care and home care to avoid nursing homes. These loans can help homeowners prepare for
their golden years, whether that’s living high or paying for a home
There are several disadvantages to reverse mortgages. Reverse mortgages can be taken out on many homes
and apartments. Often, this can leave homeowners vulnerable. Be careful – there is
disreputable people trying to make money off reverse mortgages and can be found going door to door to sell them.
Additionally, closing costs can reach $10,000. It is recommended that anyone considering a reverse mortgage do so
only after very careful consideration of their financial needs and the needs of those they will inherit
Reverse mortgages are projected to increase even more in the next few years, especially
as post-retirement income and pensions are constantly at risk.
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