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Reverse Mortgages - Options for Seniors to Consider

Reblogger
Services for Real Estate Pros with Vermont REALTORS

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Many myths and prejudices surround the topic of Reverse Mortgages.  While it is true that these types of loans are not for every senior, in some instances they can provide well-needed benefits to some.  With the consultation that is required for seniors thinking of utilizing this form of lending, seniors and their caregivers should be well-versed and educated about the benefits and drawbacks associated with their loan by the time a decision is to be made. 

Following is a short synopsis and outline of many of the features of these loans.  If you or a loved one of yours is of this age and you wish to plan for the future, please take the time to read and consider the information contained.  The next step is to contact a qualified mortgage banker for clarification of any questions you have and additional information you require.  Special certification is required to provide this type of loan, so make sure that you are working with someone that has the necessary education and certification demanded.   

If you are 62 years of age or older, own your own home and reside within that home more than one-half  of the year, you may be eligible for a Reverse Mortgage. 

  • Reverse Mortgages eliminate & payoff monthly payments or debt
  • Reverse Mortgages never include monthly payments
  • Reverse Mortgages are for those 62 yrs. & older
  • Reverse Mortgage-holders retain title/ownership of home
  • Reverse Mortgage-holders can receive a monthly, lump sum, or combination payment 
  • Reverse Mortgages DO NOT interfere with inheritances
  • Reverse Mortgage consultation is FREE                    

Reverse Mortgages turn the value of a home into cash without making a move from the owner's  home necessary.   No income is needed from an applicant in order to qualify for a Reverse Mortgage. No monthly repayment of the loan is scheduled or needed.  Cash proceeds received from a Reverse Mortgage can be paid out in several ways to a senior home owner.  A one-time lump sum cash disbursement can be made. 

A monthly "payment" advance or an account with a "creditline" are also options from which to choose and offer flexibility of timing and dollar disbursement amounts.  A combination of payment methods is possible and an option for consideration.  Typically, Reverse Mortgages are repayable upon death, the sale of the home, or permanently moving from the home.              

Many older Americans are concerned about their relatives/caregivers migration to distant locales, increasing personal health issues, rising health care costs, financial legacy and estate taxation.  Reverse Mortgages can provide alternatives and solid solutions  to address many of these important concerns.  For older children involved in the care and management of aging parents or relatives, the utilization of a Reverse Mortgage option can provide welcome financial and personal assistance to a family and budget stressed by health and monetary concerns.  It can also make it possible to keep a loved one within their familiar and well-loved family home when it would be impossible to do so otherwise. 

For seniors with health concerns, the flexibility, benefits and peace-of-mind reaped by securing this type of loan can be enormous.  The usage of Reverse Mortgage proceeds can become a key component to estate planning.    Seniors, or their caregivers, considering a Reverse Mortgage should consult with a qualified tax advisor, financial planner and their professional mortgage banker to discover their best individual and   personal financial options and benefits. 

                            "Mortgage Update & News"  -  Gene Mundt, Chicago Bancorp        www.genemundt.com

Comments (2)

Anonymous
GringoViejo

I do not find any mortgage companies that offer reverse mortgages here in Las cruces... I believe it is better to deal with a local company for mortgages than some firm listed in Texas... as an out of stater ahs no protection, even from the Texas Atty General I discovered so doing busines across border is a risk.

 

ironically, the Las Chamber of Commerce likes to advertise Las cruces as a retirement town yet, I can find no listing ofr any mortgage sources for a reverse mortgage.... "no servico para los gringos viejos circa de aqui.. por que no?"

 

(lo siento... mi Espagnol est muy mal... no professoras por "los Gringos Viejos"

Mar 11, 2009 08:35 AM
#1
Isaac E. Chavez
Vermont REALTORS - Montpelier, VT

Both Citizens Bank and Wells Fargo offer Reverse Mortgages here in Las Cruces, NM.  There is only one Reverse Mortgage program in the USA at the moment and that is the FHA program. 

Mar 11, 2009 10:51 AM