San Diego, CA (PRWEB) April 27, 2014
LoanLove.com is a borrower advice website that offers up-to-date information on all the latest news and developments that affect home loan borrowers and the options that they have available to them. The website provides in-depth information in an easy-to-understand format that both experienced and first time home loan borrowers can greatly benefit from. A new Loan Love guide titled “Reverse Mortgage Advantages: 7 Benefits For Seniors” provides readers with important information regarding the advantages of reverse mortgages for senior home owners and why taking a reverse mortgage can be a good decision in the long run.
Loan Love’s article first begins by explaining why reverse mortgages are becoming popular with senior home owners today: “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.”
Reverse mortgages are usually available as an option to occupants of single or multi-family units and the loan repayment, with interest, will only become due after the homeowner moves out, sells their house, or dies. The popularity of reverse mortgages has increased over the years and with over 600,000 homeowners currently holding a reverse mortgage loan, according the Reverse Mortgage Lenders Association, the numbers are continuing to grow. Loan Love goes on to explain why reverse mortgages have become more appealing to senior home owners by citing the many benefits they provie, which include:
- Tax Free
- Place to Live
- Payment Options
The article also goes into deeper detail on each of these benefits and tells exactly how these benefits directly affect loan borrowers. The article does take note that loan borrowers can get a number of different reverse mortgage types on the marketplace, but there is only one government sponsored reverse mortgage program known as the HECM. A HECM, otherwise known as a Home Equity Conversion Mortgage, is briefly mentioned in the article:
“Known as the Home Equity Conversion Mortgage (HECM), choosing this mortgage means your reverse program will be insured by the federal government. You must go through a Federal Housing Administration (FHA) lender to participate in this program. 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.”
Today’s reverse mortgages can help senior home owners trim down their home expenses while enjoying other benefits. “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” says Loan Love.
To learn more about the advantages of reverse mortgages, click here to read the full article at LoanLove.com.