The Advantages Of Reverse Mortgages - part 1

by Charles Kirkendall

In recent years property values have soared, while investment returns have been modest. This has created a situation where a lot of seniors are finding themselves in the position of being house rich and cash poor. These cash strapped seniors are looking for ways to increase their retirement income while continuing to live in their homes. These retirees find that their options are limited, and in most cases require them to risk their home. Enter the reverse mortgage, which can provide many advantages over these other less desirable options.

No Payments With Reverse Mortgages

The biggest advantage of a reverse mortgages is not having to make payments as long as you continue living in your home. In fact, this is the number one reason that seniors choose to borrow reverse mortgages. Almost 80% of reverse mortgage borrowers use a reverse mortgage to pay off their current loans in order to eliminate their house payments. Let's say you owe $50,000 on your first mortgage and borrow $80,000 with a reverse mortgage. This would pay off and eliminate the payment on the first mortgage and provide you with $30,000 to use as you please.

Live in Your Home as Long as You Like

The second advantage of reverse mortgages is the ability to live in your house as long as you like. The great thing about this is the amount you owe on the reverse mortgage can never be more than the house is worth. Let's say you live to 115 and have selected to recieve a $300 a month payments for life from the reverse mortgage. The amount received from the reverse mortgage payments could be substantially higher than the value of your home, yet the amount owed will still only be the value of the home. In this situation, FHA insurance will cover the difference.

Reverse Mortgage Withdrawal Options

Read the end of
The Advantages Of Reverse Mortgages

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Related Reverse Mortgage Articles: Refinancing A Reverse Mortgage The reverse mortgage is primarily a resource for our senior population, and it has become a widely used financial instrument. Understanding And Selecting Reverse Mortgages What's a reverse mortgage? In a nutshell, it's this. In a regular mortgage, you make monthly payments to the lender. Home Equity Loan - With A Reverse Mortgage, Your Home Pays You! Unlike a traditional home equity loan, a reverse mortgage requires no repayment for as long as you live in your home. How Do You Know If You Need A Reverse Mortgage? With the growing popularity of reverse mortgages across the country, more and more seniors are asking themselves, "Do I need a Reverse Mortgage?" What Is A Reverse Mortgage? What is a reverse mortgage?

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