Once a senior homeowner 62 years or older learns the general features of a reverse mortgage, they usually want to find out how much the loan can offer in proceeds. This can be done in several ways: by looking up a reverse mortgage proceeds calculator on websites (not always an accurate indicator); by talking to various lenders by phone; or by face to face appointment with a loan officer who brings actual figures to the senior for their review. Currently, only government insured Home Equity Conversion Mortgages known as HECMs are widely available.
Customers can purchase the loan either as a lump sum or a credit line. Reverse mortgage loans are available to individuals over 62 years of age. A proprietary reverse mortgage is more expensive than other types, and its major benefit is the higher home value limits.
Before selecting a plan, it is wise to consult a financial advisor who can provide you an insight on the pros and cons of a reverse mortgage. There are no restrictions on how one can use the profits. People generally utilize reverse loans to complement retirement funds, upgrade houses, take vacations, pay off other debts, or even prevent foreclosures.
The major categories of reverse mortgages include federally insured reverse mortgages, single-purpose reverse mortgages, and proprietary reverse mortgages. There are no restrictions on how one can use the profits. Reverse mortgage loans are available to individuals over 62 years of age.
Reverse mortgages can be used by seniors who need additional income to support their needs. Making the right financial decision requires a little research and advice from professionals and family you can trust. After a one hour consultation and some education on the options, the Stephenson’s decided to take action.
Reverse mortgages are not for everyone, but for some people they can be a life saver. Reverse mortgages are not for everyone, but for some people they can be a life saver. Here is a story of Jim and Sue Stephenson who were in need of home modifications and used a reverse mortgage to fund the costs:
Admittedly their home is less than senior friendly. Jim’s knee problems made it difficult for him to get up and down the stairs. Jim and Sue’s children have peace of mind knowing that their parents are now safe.
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