generate a steady stream of income for retired people
Philadelphia, PA (PRWEB) January 21, 2017
National Debt Relief recently shared in an article published January 3, 2017 some of the things people need to know about reverse mortgages. The article titled “Reverse Mortgages – What You Need to Tell Your Parents” aims to help families, especially retirees, decide if taking up a reverse mortgage will fit into their plans.
The article starts off by pointing out that reverse mortgage seems to be gaining popularity with the seniors in society. These are the ones who are about to retire or already retired. The programs allows people to convert a part of the equity in their home into monthly payments where the lender pays the homeowner.
In a bid to help consumers understand reverse mortgage better, the article explains that there are three types of programs to choose from. There are single-purpose reverse mortgages mostly offered by some state and local governmental agencies and some nonprofits. Proprietary reverse mortgages are offered by private lenders and Home Equity Conversion Mortgages (HECMs).
The article highlights some of the benefits of the program to help educate consumers. One of which is that it is able to generate a steady stream of income for retired people. Reverse mortgage also eliminates any existing mortgage which is a big relief for a lot of people especially retirees. Children of the homeowner are not liable also in case the payoff balance exceeds the value of the property.
On the other hand, there are also some downside to the program. The most obvious of which is that the estate of the homeowner will decrease over time as they choose to spend the proceeds from the loan. The article also shares that there is a big chance that fees charged on the program such as the loan origination fee, the initial Federal Housing Administration (FHA) mortgage insurance premium and others are higher.
To read the full article, click https://www.nationaldebtrelief.com/reverse-mortgages-tell-parents/