subject: Reverse Mortgages Upfront Fees Drop [print this page] The reverse mortgages are for seniors, who are age 62 or older and own their homes, where they have equity left. The qualification does not require the information about the incomes or from the credit scores.
The investor demand have risen towards these loans, because the reverse mortgages have the mortgage insurances, which guarantee that the lenders will always get the capital plus the incurred costs back.
1. Seniors Can Keep Their Old Homes.
The home is a very important place for all people and also for seniors. The home involves a lot of memories and it is easy to live in the surroundings, which is familiar. It is important to note, that the reverse mortgages do not change the ownerships of the homes, they just release money from the home equities.
2. The Security From The Insurance.
The target group for the reverse mortgages are people, who are cash poor but equity rich, i.e. people, who cannot take any more loan and who have the home equity as their only source of the extra cash. This is the reason, why the income nor credit information are not asked in this context. The other assets of the senior will never be used to pay the reverse mortgage loan.
3. A Chance To Pay The Traditional Mortgages.
One of the biggest aids is the chance to pay away the usual mortgage loan with the reverse loan. This will release a lot of money every month, because the reverse loan has no monthly back payments as does a usual mortgage have.
4. Avoiding The Home Foreclosure.
If a senior is in a danger to meet the home foreclosure, the reverse mortgage can be a big help. One alternative, how the lender can pay the reverse loan is a lump sum. This means, that a senior can use this sum to pay away the needed bills and thus to avoid the home foreclosure.
5. The Mandatory Counseling.
In every market there are scam companies trying to offer too big products and to cheat people in some way. To avoid this possibility and to give a professional guidance for seniors, the government has built a nationwide network of the reverse mortgage counselors, who honestly can help seniors.
This guidance is mandatory but it is also useful. A senior can make the question and answer list in advance, which he can go through in the meeting with the counselor. In this way his personal questions get the answers. It is also useful to discuss with other seniors and with the heirs about this alternative.
by: Juhani Tontti
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