Reverse Mortgages Are Not Just Need Based
Prominent seniors are applying for reverse mortgages- even though they have fully funded pensions or savings
. The image of the Reverse Mortgage Quote as simply a means to save the cash-poor senior from certain starvation should be ended. It is not only a need based program, after all- there are reverse mortgages that can be utilized by people who choose to do them, without being forced to. For these seniors, the choice they are making is to utilize the home equity that they have built in their home through a program; essentially they have worked hard to pay for their home and now they are asking the home to return the favor.
Because there is not an income or asset limitation for the reverse mortgage, even wealthy seniors of the right age can utilize the program and there might be many reasons they would want to. First, they might not want to touch the accounts that they have established, earmarking them for their estate - hoping that the money will be a financial legacy that does good things for the family that they will be leaving behind. Second, after the home is bought and paid for, and the bills are being paid, many think that it would be nice to have a little extra money for vacations or other uses that does not require digging into their savings. It is also nice to consider the reverse mortgage as a little safety net in case something unthinkable does occur. Finally, some savvy seniors see the reverse mortgage as a hedge against another decline in property values.
The amount that these seniors can qualify for might be astounding in some cases especially when they use the Reverse Mortgage Calculator- it allows them to enter a few numbers and some basic information and then shows them what they would be qualified for as well as giving them some basic information about where to apply for their own reverse mortgage product.
Another advantage is that even if they are able to pay the closing costs that are typical of a mortgage, the reverse mortgages charges are built right into the loan so it is not a consideration. In many cases, the lender even pays the closing costs on behalf of the borrower. While that is a saving grace for many lower income seniors, it is an additional bonus for the more prominent seniors who are making a lifestyle choice, not seeking a need based answer. Again, if they do not have to pay out of pocket money, why should they?
The money that is disbursed to them, whether they take it simply as a line of credit or as a monthly payment or even as a combination of the two, can be used for any purpose and the senior does not have to pay that money back unless they permanently leave their home- for instance they move to another state, are permanently placed in a nursing home or they become deceased. If they are married and ownership of the home is retained by the spouse, then nothing changes, however if there is no spouse in place, then the loan will come due and can be paid for by either the estate itself or the sale of the house with excess funding being returned to the estate.
by: Leonard H. Franklin
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