Reverse Mortgages - Options for Seniors to Consider
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 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
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