Carlsbad, CA (PRWEB) January 13, 2008
As more seniors are starting to look for loans to make ends meet in their home, many of them are going straight to lenders for a reverse mortgage. However, with rising living expenses and stagnant incomes, reverse mortgages can often be very expensive loans that don't come due until the borrower moves out of the house or dies. While they are smart options for some individuals, GoReverseandSave.com warns that it is not a smart choice for everyone.
One representative of GoReverse claims that in order for the reverse mortgage option to work for seniors, they have to plan on staying in the house and have to have a substantial amount of equity. If someone is doing well financially, it's not for them. Reverse mortgages allow homeowners to draw on the equity of their house. Lenders pay the homeowners, instead of the other way around.
The biggest reason people get the loan is that their incomes are not keeping pace with expenses. With medical costs and the general cost of living, many seniors are looking for more options to make money. However, they can become costly and end up making the senior pay more on their home than they thought. That is why many lenders are offering alternatives.
The main thing to keep in mind when looking at different options is the market value of the home. If you have falling equity and rising debt, you could owe $5-10,000 more on your house the very day you sign up.
For more information on reverse mortgages and for other loan options, visit http://www.goreverseandsave.com
GoReverseandSave.com is a leading online reverse mortgage lender that provides services on home loans and strives to match homeowners with the right loan at the right price. GoReverse makes the process easier to go through and helps to provide the best options based on each individual financial situation. In addition to a variety of reverse mortgage options, GoReverse also provides options for home equity loans, refinancing, and debt consolidation.
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