By financen | April 17, 2018 - 6:24 pm - Posted in Mortgage, Reverse Mortgage

The reverse mortgage is a financial instrument available to homeowners aged 62 years old or above. It takes the form of a loan which, as the name implies, works in the opposite way to a standard mortgage. With a regular mortgage, homeowners make monthly payments to a lender. Under the terms of a reverse mortgage, retirees are able to convert some of the equity in their home into cash, and they instead receive payments.

Reverse mortgages were initially introduced as a way to help retirees on a low income take advantage of any wealth they might have accumulated in their home. For many of these people, a reverse mortgage provides a lifeline, allowing them to cover basic living expenses and healthcare costs. However, there are no restrictions on how this money can be used.

The reverse mortgage is therefore a literal lifesaver for some senior Americans, but it is an option that too many remain unaware of. Read on for more information about the reverse mortgage and to find out whether it could benefit you.

Tax-Free Advance

What’s better than receiving a cash injection? Receiving a tax-free cash injection, of course! When the homeowner first takes out a reverse mortgage, they will be given cash from the lender. This is, for all intents and purposes, an advance payment. It is usually, but not always, tax-free. This money can be particularly useful for retirees who have expenses piling up, and not having to worry about the usual tax obligation reduces a common source of stress when seeking a financial boost.

Are There Any Risks or Downsides?

With any financial instrument or investment, there is always going to be some element of risk and unpredictability. The reverse mortgage is definitely a valuable tool for many people, but it isn’t the best option for everybody.

For example, you should be aware that interest will be added to the outstanding balance of the loan every month. Also, whatever money the homeowner receives through their reverse mortgage reduces their equity in the home. Consequently, should the home owner decide to move, or if they die, the equity that they leave behind will be reduced. This can be a nasty surprise for any heirs of beneficiaries.

If you are considering taking out a reverse mortgage, you need to make sure that you have fully understood all the terms and conditions beforehand. Many reverse mortgages come with some significant upfront fees, so you need to be prepared for those.

Is it Right for Me?

Retirees who are in need of some extra cash can benefit greatly from a reverse mortgage. For these people it can provide a lifeline by allowing them to cover their living expenses more easily. Many older Americans have complex healthcare needs and ballooning living expenses. If you think that a reverse mortgage could help you, have a look at those offered by American Advisors Group to get an idea of what a typical reverse mortgage looks like.

A reverse mortgage is a very useful financial instrument for many American retirees. Securing loans can be a stressful experience, especially for the older generation. The reverse mortgage can provide a less stressful option for many borrowers. Just make sure to check that there isn’t a more appropriate form of loan for you.

By financen | March 20, 2018 - 6:10 pm - Posted in Mortgage, Reverse Mortgage

As you get older and grow more responsible, your priorities begin to shift. You get to a certain age where the thought of getting a reverse mortgage suddenly begins to appeal. There are many reasons why this should be so. One of them is the thought of using this special type of mortgage to get quick cash. This may be one of the only arrangements currently available to you that can yield this desirable result.

What is the Main Appeal of Receiving a Reverse Mortgage?

There are a number of features included in a reverse mortgage arrangement that give it a very direct appeal. The entire idea behind this arrangement is to give help to seniors – that is, people who are62 and older. This help can take many forms, including giving the necessary assistance to enable seniors to tap into home equity in order to help cover the cost of retiring from their work.

How Can a Reverse Mortgage Loan Come in Handy?

A reverse mortgage loan can give you a high level of leeway when it comes to increasing the extent of your financial independence. For example, you can use a reverse mortgage to cover the cost of medical care for various situations. If you don’t think you can retire without covering a number of monthly payments, such as your car, you can use your reverse mortgage loan to cover this particular cost.

You can also use it to protect your investment portfolio during slow times in the stock market. You can even use it to delay having to receive your Social Security until later. By doing so, you can increase the size of your monthly benefits when you elect to receive them.

There is No Telling How Much Money You Can Receive

One of the most appealing features of a reverse mortgage loan is that there is no set limit to the amount of money that you may be able to receive. The amount will depend on a number of factors, such as your age, the present market value of your home, the current balance of your mortgage, and the rates that are current in the reverse mortgage industry. You may be in for quite a bargain.

There is No Reason to Worry About Getting a Reverse Mortgage

Not every person shares your sanguine attitude when it comes to getting a new type of mortgage. There are also a great many people who have the wrong idea about getting a reverse mortgage. A quick discussion with an industry expert such as American Advisors Group ought to be enough to quell the fears of even the most cautious and battle shy skeptic. There is absolutely nothing to fear from getting a reverse mortgage.

The Time for You to Learn More About Reverse Mortgages is Now

It’s up to you to decide who to trust in this sensitive and highly personal matter. However, facts are facts. More and more people are getting in touch with companies who offer reverse mortgages as an option. It’s your prerogative to learn more about the special new AAG Reverse arrangement and what it can do for you. There is no better time than the present to get personally acquainted with this amazing new deal.

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By financen | November 27, 2012 - 3:33 pm - Posted in Mortgage, Reverse Mortgage
reverse-mortgage
reverse-mortgage

Many seniors today have heard about a reverse mortgage, but they do not fully understand how this type of home mortgage works. This is a type of mortgage that allows a homeowner to take equity out of his home and that does not require mortgage payments for many years. There are many benefits associated with a reverse mortgage that seniors can enjoy. Learn more by visiting MortgageRates.ca or reading the information below.

  • No Payments:

One of the most attractive features of a reverse mortgage is that there are no monthly payments associated with this loan. The loan repayment is due in a lump sum many years down the road. Upon closing, you can receive cash equity out of your house, and this can be used for any purposes that you need. Whether you currently own your home free and clear or have a traditional mortgage in place that you are struggling to pay off with a fixed senior’s income, refinancing your home with a reverse mortgage will yield no monthly mortgage payments.

  • Live on Equity:

Seniors often live on a fixed income, and any additional cash that can be used to supplement their income is beneficial. Many seniors are sitting on a nest egg in the form of equity in their home, but they don’t want to sell their home. A reverse mortgage allows you to pull equity out of your home without having to sell your home. Through this mortgage, you can supplement your income and remain in your home. This can improve your quality of life and ease financial concerns.

  • Paying Off the Mortgage:

There are various reverse mortgage programs available. Some can remain in place for only 5 years, but others may have a term of 10 or 20 years or longer. You can sell your home at any time to pay off your mortgage, or you can sell it when the mortgage is due. A home will generally increase in value from year to year, so there often will be additional equity in the home at the time the mortgage is due.

Once you understand how a reverse mortgage works and the many benefits that this type of loan can provide, you may consider talking to a lender or mortgage broker about how this loan may help you specifically. With Canada mortgage rates so low, now is a great time to apply for a mortgage and ease your financial concerns with a reverse mortgage.

Great Resources:

http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/rmtopten

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