San Diego, CA (PRWEB) August 31, 2013
LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the most recent information on mortgage lending news, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. To help expand their readers’ knowledge on a wide variety of loan types, the website recently released a reverse mortgage loan guide that explains the details of this home equity loan that is geared towards elderly homeowners.
Loan Love’s guide starts by saying: “It used to be that even just a few years ago, reverse mortgages were viewed with suspicion: After all, these loans are marketed to homeowners who are at least 62 years old, and a lot of critics have charged that the lenders who handled the loans might be trying to take advantage of “the elderly” (really? 62 is elderly?) or that older consumers might not be able to fully understand the ins and outs of reverse mortgages. Of course, that last point could be said of anyone – mortgages of all types can be notoriously difficult to understand, no matter how or young or old you are.”
The article continues stating that: “…today, the attitude toward reverse mortgages has changed; even the Wall Street Journal notes the loans are being used – legitimately – by homeowners of all income levels who want to tap into their home’s equity without having the burden of monthly payments. As that article notes, while it used to be thought that reverse mortgages were used only by consumers facing potential financial difficulties, today’s reverse mortgages are regularly being used as tax shelters and as part of an overall investment strategy by seniors who are financially well off. Let’s dive in and answer the question, “how do reverse mortgages work?”
A quick overview is then given that outlines the reverse mortgage process and gives details on some of the changes that have been made to the rules that oversee the reverse mortgage program. The article explains that reverse mortgages work similarly to home equity mortgages, which reverse mortgages are based on. They allow the homeowner to access the equity they have built in their home without having to sell their home or take out a loan. In return, the bank or loan servicer gets an interest in the borrower’s home and if the borrower moves or passes away, the bank will take that equity back through the sale of the home.
Those who qualify for a reverse mortgage may choose to draw on their equity in a number of ways. They may take it out in a lump sum or opt for a line of credit or monthly payments. Many reverse mortgage borrowers choose a combination of these payment methods. The real attractive benefit for reverse mortgages is that most loans do not have any income requirements, which makes it perfect for retirees. Also taking a loan out will not affect the senior’s social security or Medicare benefits.
The article also report that: “Recently, President Obama signed a new, bipartisan bill into law that offers more protections for both lenders and borrowers. For instance, instead of just being required to participate in an informational session about the loans, today’s borrowers must have – again, free of cost – financial counseling to make sure the loan they get is the best one for their needs. The moral: Don’t turn up your nose at reverse mortgages; no matter what financial situation you find yourself facing, these loans could offer you significant financial advantages.”
For more information, please visit LoanLove.com for the full reverse mortgage loan guide.