subject: Senior! Do You Know What Is Reverse Mortgage [print this page] Even if a senior wants to get cash money with the reverse mortgage loan, this loan is always a long term decision. When a senior thinks, what is reverse mortgage, he has to think issues like the interest rates, especially if his loan will have a variable rate.
1. A Senior Will Use The Equity, But The Equity Continues To Grow.
This is a very important feature, when you think what is reverse mortgage. Despite of the fact, that the reverse mortgage will be taken against the equity of your home, you will remain the owner. And what is even more important is, that the price of your home will increase during a long period of time. It is a good investment.
There has never been a long period of time, that the home prices had not increased, with the only exception of areas, which has lost inhabitants. The price increase means a double benefit for a senior. He will not only use the equity but the equity will at the same time grow.
2. A Senior Can Deduct The Loan Interests In The Taxation.
The nature of the reverse loan is, that the borrower will not pay back anything monthly. All costs and the capital will be paid back, when the loan will be closed. So will the interests. After all interests have been collected and summed together, they will be paid using the sales price of the home. At this phase the borrower can deduct the interests in the taxation.
3. The Repairs Done Increase The Value Of The Home.
Seniors use reverse loans for many purposes. One usual purpose is to make the repairs of their homes. When the homes will be kept in good conditions, their values remain on good levels. In this way, the reverse mortgage loans are used as investment tools and seniors can pick the benefits, when the homes will be sold.
4. The Monthly Cash Lifts Your Standard Of Living.
If someone will ask, what is reverse mortgage, we can say, that it is a way to give a senior more cash money for whatever need he has. He can take the money as a lump sum, as monthly payments, as a credit line or as a combination of all these. How he takes, depends on the needs he has.
When we think in which life situation a typical senior lives, these reverse loans offer a very human way to improve the standard of living and to give aid to people, who have really earned it. It would be very wise, if more seniors would get information about these loans. This would help to distribute the information to more and more seniors.
It would also be useful to distribute more information to make seniors to discuss about these possibilities. The more information is among them, the better they could help each other and to solve those many personal questions, which most seniors have.
by: Juhani Tontti
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