The Senior Reverse Mortgages Tripled Their Popularity
Another note is also important. The senior reverse mortgages grew also during the so called financial crises. This means that the benefits, which these special products give to the seniors are real benefits. The reverse mortgage system includes a so called mandatory counseling.
The counselors of the senior reverse mortgages are experts, who are not in the payrolls of the lenders, but they are federal counselors. They guide also about the alternatives for the senior reverse loans and this means that the popularity growth testifies, that the senior reverse mortgages beat the alternatives in many cases.
1. Easy To Qualify.
The idea has been that the reverse loans are very easy to qualify. Everybody, who is at least 62 and owns a home, where he has equity left, can qualify. Almost all home types are accepted, excluding some mobile homes. Altogether three borrowers are accepted, but all must of course fulfil the qualifications, i.e. to be at least 62 and to be the owner of the home.
2. The Loan Can Be Bigger Than The Home Value.
The loan is taken against the appraised value of the home. This means, that seniors, who took their loans before the financial crises can now have loans, which are bigger than the home values. This has no meaning, because if the loan will be closed with the lower home value and the home selling price cannot cover all the costs, then the mandatory mortgage insurance will pay the difference.
3. The Senior Reverse Mortgages Are Secured.
The reverse loan is a sure investment to the lender and this fact has decreased the upfront costs of these loans. The security comes from the fact, that the borrower has to take the mandatory mortgage insurance. This guarantees, that the lender will always get his money in all cases.
4. The Home Is The Only Guarantee.
When a senior takes the reverse loan, he takes it always against the home equity, which is the only guarantee for the loan. The loan agreement includes a mandatory mortgage insurance. These two factors mean that the borrower will never lose any other assets.
5. The Importance Of The Mandatory Counseling.
The counseling is like a mental guarantee for these loans, because the counselor can guide about the trustworthy lenders and about the details of the loans. Because the lenders are not in the payrolls of any lender, they are free to recommend the alternatives, which will best fit to the senior financial needs.
When we go through all the benefits, which the reverse loans offer, it is not a surprise that these loans have grown in the popularity. Today, when the internet and the many forums are also popular the information will spread very quickly. I think this fact has added the reverse loan popularity substantially.
by: Juhani Tontti The Advantage Of Seeking A Mortgage Broker Mortgage Loan Modification California To Avoid Financial Crisis