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Reverse Mortgages for Seniors

A Reverse Mortgage Lets Seniors Take Advantage of Home Equity

According to a number of sources, there are an increasing number of people who are choosing to take advantage of their home equity.

Whether it's because many seniors are experiencing a loss of pension benefits, inflation, rising home heating costs or other reasons, many are using their home equity to cover daily costs. According to a source:

Even in the midst of a housing recession, one segment of the mortgage market has been booming: reverse mortgages, which provide a line of credit or monthly payments to seniors 62 or older, using an existing home as collateral.

Reverse mortgages enable seniors to receive payments based on their home equity. As a result, more seniors are able to keep their homes and make ends meet.

So, how does a reverse mortgage work? The simplest explanation is this: seniors who apply for a reverse mortgage can receive a lump sum, monthly payments or a line of credit based on their home equity.

Is there a catch? Surprisingly, no. When seniors take advantage of their home equity with a reverse mortgage, they cannot lose their homes. The money received needs to be repaid once the homeowner leaves the home, sells the home or passes away.

As a result, many find that taking advantage of their home equity with a reverse mortgage is a great opportunity - one that will allow them to make ends meet and avoid the struggles that may come once they no longer are bringing in a significant income.

www.atlantismortgage.com

Jonathan Saffiedine

866-357-9100

Posted by Jonathan Saffiedine on 08/20/2007 11:01 AM

Comments (5)

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5 Comments on Reverse Mortgages for Seniors

AUG

2007

How is it guaranteed that they won't lose their home? People live much longer these days. Thanks!!

I am not going to even pretend like I fully understand the mortgage advantages and disadvantages of this type of mortgage. Thought you might want to know though... I was listening to Dave Ramsay last week and heard him have a lot of negative things about it

AUG

2007

Stephen: this has become an interesting topic for me and I've been waiting for the other shoe to drop. I'll have to see what I can find from Dave Ramsay. I believe in getting the entire picture, good and bad, whatever the case may be. As babyboomers continue to age, I believe we are going to be facing this issue quite significantly.

Johnathan: Someone tipped me off to this and you may already know it but if you go to search on Active Rain and type in Reverse Mortgages, a ton of blogs come up about it. I am trying to research this topic as thoroughly as I can so it was good to see so much information about it already on AR. I believe in telling every senior to proceed with caution. I've lived long enough to know that if it sounds too good to be true, it is even though I do think a Reverse Mortgage is the right thing to do for the right person in the right situation. I think seniors should really educate themselves before putting their biggest investment on the line. Thanks for helping to educate us further.

JUL

2008

Thanks for you for taking the time to comment on this subject in the Active Rain network. AR is the new "cyber backbone" of the industry, and with it's uplink to Localism.com it is transforming the real estate marketplace. Agents who don't see which way the cyberwind is blowing are going to find themselves at a considerable disadvantage inside of three to five years.

NOV

2008

have you thought of syndicating yourself and blog at real estate loans dot com for a little more retail consumer views? you've got some good stuff to share.

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