Should you Consider a Reverse Mortgage?

Should you Consider a Reverse Mortgage?
Copyright © Jose Love

I decided to publish this article because so many
of our family members own homes, are retired and
have reached age 62. Therefore, they possibly
qualify for a reverse mortgage. When done
correctly, a reverse mortgage can partially and,
in some cases, totally alleviate financialworries
for seniors. I have provided a link later in this
article that will answer most of your questions
about this unique financial instrument. Here are
some highlights and interesting facts:


Reverse Mortgages Offer Senior Homeowners
a Way to Turn Home Equity into Tax Free Cash!

Reverse Mortgages Can Help Seniors
Pay for Long-Term Care Needs.

Out of 27.5 million elder U.S. households (age 62+)

15 million could qualify for a reverse mortgage.

And of that total 13.2 million are candidates for

using reverse mortgages to pay for LTC at home,

according to the study, which is being funded by

the Centers for Medicare and Medicaid Services and

the Robert Wood Johnson Foundation.

All Reverse Mortgages are not the same

The Home Equity Conversion Mortgage (HECM) is the

only reverse mortgage insured by the federal

government. HECM loans are insured by the Federal

Housing Administration (FHA), which is part of the

U.S. Department of Housing and Urban Development

(HUD).

HECMs Versus Other Reverses

HECM loans generally provide the largest loan

advances of any reverse mortgage. HECMs also give

you the most choices in how the loan is paid to

you, and you can use the money for any purpose.

Although they can be costly, HECMs are generally

less expensive than privately-insured reverse

mortgages. Other reverse mortgages may have smaller

fees, but they generally have higher interest

rates. On the whole, HECMs are likely to cost less

in most cases.

The only reverse mortgages that always cost the

least are ones offered by state or local

governments. These loans typically must be used for

one specific purpose only, for example, to repair

your home, or pay your property taxes. They also

generally are available only to homeowners with low

to moderate incomes.

Please go to the following link to get more
details on Reverse Mortgages:


http:www.aarp.org/money/revmort

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