San Diego, CA (PRWEB) May 19, 2014
Reverse mortgages can be very beneficial for those who are of an age to qualify for them. Unfortunately, there is a lot of misinformation going around which can make this particular loan option seem less appealing for seniors. A newly featured guide from LoanLove.com seeks to clear up some of this confusion by looking at 7 benefits of reverse mortgages for seniors which can help them to decide if these types of loan programs are the best fit for their particular home ownership situation.
This new Loan Love guide continues to fulfill the website’s mission of helping homeowners to find loans that they will love. By empowered borrowers with first class knowledge, quality resources, and connections to top rated industry professionals, the website has quickly become a trusted destination for current news and expert loan advice. The new article, titled “Reverse Mortgage Advantages: 7 Benefits For Seniors” starts by saying,
“If you are a senior aged 62 and over, and own your home, you may have been curious about television or radio commercials with well-known spokespeople enticing you to borrow against your home’s equity with a reverse mortgage. Once targeted primarily at older home owners in need of improved cash flow with few alternatives, today’s reverse mortgage programs hold some benefits that may appeal to a wider group of homeowners.”
Loan Love goes on to explain that these types of loans are typically available to senior owners of single family homes or owners of multi-family homes, so long as the borrower is occupying one of the units in the multi-family complex. Certain condominiums and manufactured homes my also qualify for this loan program. The article then outlines some of the technical details about loan repayment and then lists the seven main advantages of reverse mortgages.
The first of the benefits to reverse mortgages which Loan Love lists is – flexibility. The article says, “The loans don’t have to be used for a specific purpose. Although they are most often used for home improvements, repairs, healthcare expenses or home care that may otherwise be out of reach, they can be used for anything.”
Security is another of the reverse mortgage benefits listed here. The article says, “With a home equity line of credit, you run the risk of losing your home if you default on your loan. However, this is not the case with a reverse mortgage. Payments on your loan are not due until you permanently leave your home, and therefore there is no risk of losing your home because of nonpayment. You are required to keep your home in good repair, as well as pay for insurance and taxes, however.”
The other benefits of reverse mortgages that are explained in fuller detail in the guide are: insulation; tax free; interest; place to live; and payment options.
Lastly the article looks at some of the government programs that are available and says, “In the past, only homeowners who had no other means of improving their financial picture were advised to take out a reverse mortgage. This was because of the high upfront fees involved, which were sometimes as high as 5 percent of the total loan amount. However, there are now more options available to seniors. New types of reverse mortgage products generally have lower upfront borrowing fees than those of the past. Lower fees have made reverse mortgages attractive even to those who have other financial assets because it has allowed these seniors to delay selling off depressed investments and use a reverse mortgage to improve their cash flow.”
For more information on this subject, click here to view the full guide at LoanLove.com.