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Reverse Mortgage Becoming Popular Option

Published on 11/15/2010

A growing number of seniors who have been hit especially hard by the economy in part because of medical bills and lost investments may be able to cope by applying for reverse mortgages.

Living off of the equity in ones home could be a great way for seniors to alleviate economic hardship, but reverse mortgages can be complicated and confusing. You can start researching by reviewing the reverse mortgage basics:

• There are two types of reverse mortgages: Home Equity Conversion Mortgage (HECM) and proprietary reverse mortgage. The former has more requirements including advance counseling but is insured by the FHA.
• You must be at least 62-years-old and occupy the home to apply.
• Typically, your mortgage must be paid off before applying.
• Funds can be drawn as a lump sum, credit line, or monthly payments.
• Reverse mortgages must be repaid when the last borrowers dies, all borrowers move to a new primary residence, or the loan is in default.
• If your home sells for less than the balance of the reverse mortgage, you are not liable for the remainder of the mortgage.
• Reverse mortgage closing costs can be higher than that of a traditional mortgage.

If you have any questions about whether reverse mortgage may be right for you, be sure to ask a question above. A reverse mortgage professional will be happy to address all of your questions and concerns at NO CHARGE whatsoever.

And be sure to check out AAGs Helpful Website for even more invaluable information about reverse mortgage.

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