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11/30/2012

By Pat Gray
12/1/2012

I Don’t Need a Reverse ...
12/1/2012

Financing Your Future
  Page 1 of 1  
11/30/2012
By Pat Gray





It is becoming increasingly more commonplace to find articles in newspapers, magazines, or on websites that contain opinions and information about Reverse Mortgages.  Just as common throughout all media are advertisements placed by major banks, mortgage lenders, and mortgage brokers who offer them.  Given the complexity of the product, especially in light of the many variations offered, confusion and misconceptions about these loans are typical and understandable.  One thing, however, is clear.   More and more senior citizens are using Reverse Mortgages as a tool to provide additional income, to extinguish existing mortgages and liens with hard-to-cover monthly payments, or to purchase retirement homes.

 

Simply put, Reverse Mortgages allow people age sixty-two (62) or older to either tap into the equity in their existing primary residence, or to purchase a primary residence, with a loan that, once closed, requires no monthly principal and interest payments.  Borrowers do not have to meet income or credit score qualifications and the proceeds of the loan are not income to the borrower, so there is no income tax on funds received.  The borrower(s) retain title to their home and may live in it for as long as they wish, provided they pay their annual property taxes and homeowner’s insurance, maintain the home, and live in it for the majority of every year.

 

Certainly there is more information that prudent people must know in order to decide if a reverse Mortgage is right for them.  Call today to speak with someone you can trust, someone who will keep your inquiry and financial information confidential, and someone who will provide you with the knowledge to make an informed decision.