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Reverse Mortgages - Funding Retirement
By Dan Lewis, Fri Dec 9th
With people living longer and longer, funding retirement canbecome a stressful situation. Reverse mortgages can help homeowners avoid worries about cash flow.
Reverse Mortgages
Reverse mortgages are essentially a method for turning theequity in your home into cash. Although there are variousoptions, a typical reverse mortgage will provide you with a lumpsum, monthly payments or a credit line based on the equity inyour home. The mortgage will have a term of a certain number ofyears. Instead of making payments on the loan, the bank willbecome the owner of the percentage of your equity applied forthe loan at the end of the term.
Reverse mortgages are only available to older applicants. Everyperson
listed on the deed of the home must be 62 years of age orolder.
You must also use the home as your primary residence.
The decision to pursue a reverse mortgage can be a tricky one.The biggest issue is an emotional one. We are all mentallytrained to buy a home and try to build equity over the years.With a reverse mortgage, we are making the mental leap toactually reduce the equity in our homes. While this may soundlike a sensible method for using the nest egg equity, it makesyou, me and everyone very nervous.
For some seniors, the reverse mortgage decision makes sensewhile it doesn't for others. To limit the potential for problemsand scams, banks are required to have senior applicants meetwith unbiased third parties to determine the benefits anddownside of using reverse mortgages.
If you or your parents have reached retirement age and arefacing cash flow problems, you need to become flexible indealing with finances. Reverse mortgages may be one flexibleoption that makes sense for your particular situation. Afterall, you can't take the equity in a home with you.
About the author:Dan Lewis is with http://www.gwhomeloans.com - a San Diegomortgage brokers providing San Diego home loans. Visithttp://www.gwhomeloans.com/services.html to learn more aboutoptions on San Diego mortgages from a San Diego mortgage brokercompany.
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Advantages Of Capital And Repayment Mortgages
By James Smiths
The numerous developments in the world of mortgages have seen almost all kinds of people taking a mortgage. This essentially means that if you have a decent job and a passable credit history, you can Read more...
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Is A Reverse Mortgage Right For You?
By Joseph Kenny
In the last few years reverse mortgages have been growing in popularity among the elderly. While there are numerous advantages associated with reverse mortgages there are also disadvantages as well. Read more...
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