Reverse Mortgages Could Be a Bailout For Seniors
By George Fisher
The reverse mortgage is fundamentally a financial-planning tool. There are millions of seniors that are house-rich and cash poor. They often have substantial equity in their homes but cannot access it without taking on the burden of payments, whether they use a conventional mortgage or pay the monthly interest on a “line of credit”. Of course, they could sell their home and bank the equity. The problem is that they usually do not want to sell or they can not qualify for a loan due to fixed income and high debt to income ratios. With today’s housing market, this may not be a good time to sell. What they actually need is improved cash flow, a line of credit that requires no repayment as long as they live in their home, or a lump sum of money to solve a financial need. Whether that need is monthly living expenses, health care, or a major purchase, the Home Equity Conversion plan (“reverse mortgage”) can often solve the problem.
The bottom line is that we all need or want more cash flow. This product provides just that for seniors with substantial equity. The Reverse Mortgage is a powerful financial-planning tool that offers numerous unique benefits.
Are reverse mortgages only for the “needy”?
Reverse Mortgages are NOT solely for the needy. They are used by anyone who wishes to convert equity value in their home to cash or other liquid assets.
This FHA-HUD government program was originally designed to provide revenue for senior homeowners who needed additional income to remain in their homes.
However, everyone over 62 whose homes have developed substantial “useable equity” due to inflation, those who own their homes free and clear, and seniors who have a relatively small mortgage, can now convert their previously non-liquid equity into cash, a line of credit, or a lifetime income.
No repayment is required for as long as you continue to live in your home!
In short, the government’s FHA-insured HUD Reverse Mortgage program now provides senior homeowners a safe way to access the equity in their homes, enabling them to enjoy their retirement years with greater financial comfort and security.
Reverse mortgages can be processed for seniors with no out of pocket costs. That means no upfront appraisal or application fees. There are no income or credit qualifications and reverse mortgages are available for seniors who are 62 or older. Reverse mortgages are not for everyone, but to many it’s a life changer, a true positive difference maker. It costs nothing but a little time to find out if it right for you.
About The Author: George Fisher is a Senior Mortgage Advisor with over 17 years of mortgage industry experience. His website at http://www.HUDReverse.info offers reverse mortgage for Ohio residents. Subscribe for a FREE monthly newsletter for seniors at seniorhelp@getmyreverse.com or at http://www.getmyreverse.com For more information via a FREE 24/7 pre-recorded message Call 800-558-8757 x675.
Photo by The Mighty Tim Inconnu
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