San Diego, CA (PRWEB) April 24, 2014
Reverse mortgages are a popular option for many older home loan borrowers, and they provide many unique benefits that are not available with any other loan programs. A new article from LoanLove.com takes a look at these reverse mortgage advantages for seniors and looks at the different options available. Loan Love is a borrower advice website that has become a trusted destination for current news and expert loan advice. The website empowers homeowners with first class knowledge, valuable resources, and connections to top-rated industry professionals. The new guide to reverse mortgage continues to ensure that home loan borrowers have all the information that they need to make the best-informed decisions regarding their mortgages.
This new Loan Love guide titled, “Reverse Mortgage Advantages: 7 Benefits For Seniors” says, “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 explains that reverse mortgages are typically available for those who own a single family home or a multi-family unit, so long as the unit is occupied by the borrower. Certain condominiums and manufactured homes may also be eligible for reverse mortgages. The article says, “Reverse mortgages have steadily grown in popularity, with nearly 600,000 households estimated to have an outstanding reverse-mortgage loan, according to the National Reverse Mortgage Lenders Association, a Washington DC trade group.”
The reverse mortgage guide also list the seven biggest advantages of reverse mortgages for seniors as:
- Tax Free
- Place to Live
- Payment Options
The article, of course, gives a fuller explanation of the bullet points listed above. Loan Love also takes a look at the different reverse mortgage options available currently, including the HECM, or Home Equity Conversion Mortgage, which is a reverse mortgage program backed by the federal government. To cap things off, the article 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 read the full guide at LoanLove.com.