What are Some of the Benefits of a Reverse Mortgage?

By -
A reverse mortgage is a type of home mortgage that allows seniors who own their home to access the equity in their home. Instead of making payments to a lender, the homeowner receives payments from a lender. This can be through a lump sum, monthly payments to the homeowner, as a line of credit, or a combination of the three. What are some benefits of a reverse mortgage?

Access to Cash

A major benefit of a reverse mortgage is access to cash. Senior citizens who live on a fixed income may find that a reverse mortgage is an excellent way to come up with money to help their budget. For example, a senior who is retired and living on a fixed income may find it difficult to make ends meet, but a reverse mortgage allows them to draw off of the equity in their home to meet their budget.


No Income or Credit Requirements

The thought of borrowing money can be daunting if you have a low income or poor credit. One of the benefits of a reverse mortgage is that are no income or credit requirements.

You Can Stay in Your Home

Ultimately, what a reverse mortgage means is that you are selling your home. When you move out or pass away, the lender will take ownership of your home. The advantage is that you are able to make use of the money when you need it and still live in your home.

You Still Own Your Home

You will still retain ownership of your home during the length of the reverse mortgage, until you pass away or move out of your home. You can also choose to pay back the reverse mortgage at any time.


A reverse mortgage may not be the best choice for everyone, but for many seniors who are struggling financially, it is a good option to consider.

Comments

Post a Comment

Popular posts from this blog

Citi Settles for $7 Billion

By -
Image
Wikimedia Commons Ouch!  Earlier this week it was announced that Citigroup had settled the inquiry into the company’s mortgage practices – to the tune of $7 billion. The deal, which was settled with the Justice Department, represents one of the largest settlements ever made in response to a federal inquiry; specifically in terms of the penalties levied. Of the $7 billion, $4 billion was in penalties alone while $2.5 billion will go towards providing mortgage modifications to homeowners. Another $500 million will go to the Federal Deposit Insurance Corp and 5 separate states.
Read more

FHFA Extends High LTV Refinance Program into 2011

By -
Homeowners who hope to refinance existing mortgages that are "underwater" just got a reprieve that will allow them another year to do so. The Federal Home Financing Agency announced Monday that its Home Affordable Refinance Program (HARP), which was originally set to expire on June 30, 2010, will be extended to June 30, 2011. HARP, part of the Making Home Affordable Program, is designed to expand access to refinancing for otherwise qualified borrowers who cannot move into more affordable mortgages because of a lack of equity in their homes. Unlike other homeownership assistance programs, HARP guidelines are designed for borrowers who are current on their mortgages. The program was originally designed to help homeowners with a loan-to-value (LTV) ratio up to 105 percent including those with some equity but not enough to refinance without private mortgage insurance. Last October that LTV figure was revised upward to 125 percent. Acting FHFA Director Ed DeMarco said tha
Read more