Reverse Mortgages were designed for the elderly, and more specifically, homeowners who are over the age of 62. What can a consumer use a Reverse Mortgage for as well as what are the consumer’s options for this mortgage? A Reverse Mortgage is a uncommon alternative to Home Equity Lines of Credit (HELOC) and Second Mortgages. Basically, the program allows elderly homeowners to transliterate some of their home equity into cash. The consumer can receive the mortgage in a lump-sum, monthly installments, or as well as a credit line account. The consumer does not have to pay back the mortgage until the home is no longer the consumer’s primary residence, they decide to sell the home, or they pass away. The usefulness of this mortgage is because it provides elderly people, the majority of which are retired and already on a fixed income, extra cash that can be utilized for tropical vacations, unexpected expenditures as well as those ongoing medical bills. Be forewarned that a Reverse Mortgage is only a great plan for consumers who plan to stay in their home for a good period of time. Upfront costs for a Reverse Mortgage are high, and do not pay off over a short period.
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General Overview for Reverse Mortgages
Why Should a Consumer Obtain a Reverse Mortgage? It was also designed for consumers who are reliant on their retirement or social security – those are the consumers who can get this mortgage. A great deal of consumers find that it provides them with the opportunity to make needed home improvements — an example of this would be such as installing a ramp for wheelchair accessibility – that consumer would not otherwise be able to pay for. There is another benefit aspect to a Reverse Mortgage is that the amount owed can never be more than the appraised value of the home. Should the consumer sell the property for more than their reverse loan balance, they keep the balance.
There are specific types of Reverse Mortgages and they are:
• The Home Equity Conversion Mortgage
• Fannie Mae Home Keeper & Home Keeper for Home Purchase
• Financial Freedom Cash Account
• CHIP Reverse Mortgage for Senior in Canada
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About Reverse Mortgages
Important Note: Can a Reverse Mortgage Interfere with a Consumer’s Medicaid? It just all depends: It depends on how the consumer receive their payments as well as how they spend them. If the consumer receives monthly payments and do not spend all of the money within the same month it was received, the consumer will be required to report any unused and/or unspent money as a resource.
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