Reverse mortgages can allow seniors who meet the requirements to release a portion of their homes equity from their homes without incurring more monthly mortgage payments. This is the only program, which allows seniors to borrow money from their home without having to sell the home/move out/downsize or have mortgage payments.
Shall we quickly review your forward mortgage options – with a home equity line of credit you are also able to borrow money from your existing equity but the difference is that you would need to meet strict qualifying requirements and or have a mortgage payment. This is also the case when comparing the HECM option to cash out refinance, home equity loan, or taking a second mortgage.
Sounds pretty good right – you are not alone in that train of thought – more than 600,000 seniors have taken a reverse mortgage – can that many seniors be in the wrong?
If you are considering selling your home or buying a smaller one (downsizing) please compare the costs involved in your options. Many seniors have heard that the reverse mortgage is an expensive option but when you actually compare it to your other retirement alternatives you will see that the costs are not really what matters in this decision. This is your retirement after all, and the main decision here is how do you spend your equity (should you retire in your current home or move)? Those are the tough decisions you can make one your own time until then there is nothing wrong with you getting a free HECM quote.
Is the solution for many seniors who are currently in retirement, own a home, but need cash or income in order to have a comfortable retirement? Many seniors we speak to on a daily basis do not have other assets which they can sell or turn liquid, leaving them stuck with a home with a lot of equity, but this equity does not help pay their living expenses.
Lets cover more of the basics including more explanations about the HECM Reverse Mortgage Loan
In order to qualify for a reverse mortgage you have to meet the following requirements
§ Must be 62 years or older
§ Own the home
§ Never have defaulted on the mortgage
§ Home must be your primary residence
§ Property has to be a 1-4 family home, apartment, condo
A reverse mortgage is a loan which is federally insured providing easy access to one’s equity without having to sell the home, specifically made for seniors who are at least 62 years or older.
How much equity will I be able to borrow?
If you want an estimate please use our free reverse mortgage calculator
§ The age of the youngest borrower – more equity can be released if you are older
§ The value of the home – you can get an estimate by visiting http://www.zillow.com/
§ Current market reverse mortgage interest rates
§ The amount that you currently owe on your mortgage – this will have to be paid off before you receive any equity
With a reverse mortgage loan you get to keep your home, own the property, receiving guaranteed income for life from the bank, and enjoy the freedom to retire knowing your financially fit.
There are many questions and doubts that we can answer on an individual basis if you are concerned about whether or not this is a viable option for your retirement you can review the top 10 reverse mortgage myths.
We have built this site in order to provide the most up to date information for consumers who are considering a reverse mortgage and through our free reverse mortgage comparison service you will receive no obligation quotes which will save you time and money.