If one is 62 years and above and wants to access some of the value in the home but one does not want to sell or sign a deed away then reverse mortgage is something that one should consider getting more details about. In the following part of the post we will briefly present some basic facts about reverse mortgages from reverse mortgage broker and then specify the benefits of this financial instrument for senior homeowners. 

In its simplest meaning, a Reverse Mortgage is just that; a mortgage taken and given in reverse.

 

A reverse mortgage thus comes in as a Special type of financing product, whereby the homeowner who is of a certain age gains access to cash using his house as security. People use it as security to get a loan; therefore what one has in the house is locked capital, with reverse mortgages, one can unlock it, without being forced to move out. 

 

The federal housing administration states that no payments are required to be made on the reverse mortgage, until the borrowers no longer occupy the property as their primary residence. You keep your property, yet you can generate tax free income, additional to pension income after the sale. 

 

In any instance, the home is sold and is not a principal residence, then the reverse mortgage loans must be paid. A reverse mortgage is different from the second mortgages or home equity loans in that the amount to be paid back cannot exceed the present market value of the house at the time of payoff irrespective to how it may have swelled later on from the initial appraised amount of the house. This assists to protect you and your heirs from buying at a higher cost than what may be popular in the market at the time of your acquisition. 

 

Key Benefits

 

Supplement Retirement Income

Indeed, another advantage of a reverse mortgage is that it can make available cash to support retirement income. Another advantage of a reverse mortgage is that the amount received from it is free from taxes, making them more effective when it comes to funding. Reverse mortgages can offer people extra cash when they have increasing expenses but are not required to make extreme changes in their living standards.

Eliminate Existing Mortgage

Some of the borrowers apply for the reverse mortgage to clear their forward mortgage and hence no monthly mortgage payments to make. This can enable more disposable income, especially when one is out of active working age such as the elderly.

 

Financial Home Improvements & Health Care

This is because reverse mortgage funds enable the homeowners to pay for valuable home renovations that can facilitate aging in place. Elements such as ramps for wheelchair, stairs lift and grab bars can be incorporated to enhance mobility and self sufficiency. Money can also be used to cover medical expenses, or to hire personal attendants for a family member.

 

Avoid Burdening Family

This means that taking out a reverse mortgage implies no more having to sell the family home and no more begging from relatives and friends for money. It enables senior citizens to make arrangements for the kind of retirement they would like to have without making their families miserable.

 

Who Offers Reverse Mortgages?

 

To get a Federally-insured Home Equity Conversion Mortgage (HECM) reverse mortgage for instance the most common type, one is required to go through an information session with an independent, government approved counselor. This session gives various facts, requisites and options that may help decide whether a reverse mortgage is right for you.

 

Sunlite Mortgage is one of the reverse mortgage lenders and brokers that can be relied on, bearing the NRMLA endorsement. Their staff of experienced reverse mortgage consultants help borrowers with documentation, appraisal and counseling for a reverse mortgage that suits one’s financial status. Sunlite Mortgage goes out of its way to help applicants understand what reverse mortgage entails so that they can make the right choice.

Reverse Mortgage: To Take or Not to Take 

 

Nonetheless, reverse mortgage is not advantageous in each case though it is advantageous when used in coordination with the planning of experts like Sunlite Mortgage. To get to the right clients, the right approach is to consult a professional reverse mortgage broker, who will advise one whether it is advisable to adopt the reverse mortgage into its strategic plan. Call today and speak with an advisor at Sunlite Mortgage about your questions to find out whether you or your close one could benefit from using a reverse mortgage product like HECM.