Month: June 2015

Many seniors who have owned a home for many years and never missed a monthly mortgage payment have found that when they want to down-size, banks are not keen about funding a new mortgage.

A viable option is a “reverse mortgage” which allows the Senior to purchase a new home, using only a portion of the sales proceeds from the sale of his/her home and the reverse mortgage will up the balance. Plus, the borrower’s new home is now paid for and there are no monthly mortgage payments.

Let’s say you have rented for years and don’t have a home to sell, the “reverse mortgage” is still a very viable option. With the money you have in the bank you use for a down-payment and the “reverse mortgage” will pick up the difference. No longer will the Senior renter have to worry about rent increases or a Notice to Vacate.

It’s important to know that the only way a Senior could lose his or her home is if they are unable to pay their taxes, insurance, and home owner association dues.

If we detect this to be true with a potential client, we will advise that a “reverse mortgage” is not right for them.

 

 

Being Over 62 and Having a Credit Score Over 800 Doesn’t Mean You’ll Get A Conventional Loan

More than 700,000 USA households have taken advantage of the benefits of a Reverse Mortgage, which allows homeowners 62 or older to convert a portion of their home equity into tax-free cash without giving up title. Besides the cash, the Reverse Mortgage borrower will no longer have to pay monthly mortgage payments as long as they live in the house.

Recently, the AARP conducted a nationwide survey of Reverse Mortgage borrowers and found that  94% said that a Reverse Mortgage is having a positive effect on their retirement. The top three reasons why senior homeowners, in this economy, have been choosing to take out Reverse Mortgages are:

• They need money to pay medical and credit card bills..

• Polls show that 80% of seniors don’t want to leave their homes.

• The third reason is they want to have extra money to enjoy their retirement. A Reverse Mortgage satisfies those three wishes.

“There are hundreds of senior homeowners who need cash and would like a reliable resource to explain the pros and cons of a Reverse Mortgage. That’s exactly what our firm does. First and foremost, we are educators. Before any presentation is made, education takes place.”

Ross adds, “It’s important to inform the homeowner that Reverse Mortgage Borrowers will never lose their homes if they pay the taxes, insurance, association dues and maintain their home. The title always remains with the borrower. If a person doesn’t have the funds to do so, then a Reverse Mortgage is not right for them.”

Although a Reverse Mortgage offers many great benefits, the question comes down to: is a Reverse Mortgage right for you? Robert Ross, Senior Reverse Mortgage Educator recommends:, “If you would like to know if a Reverse Mortgage is right for you, come by our new office or call (800) 800-2190 and  we will mail you a free educational DVD that explains the pros and cons of a Reverse Mortgage.”

Reverse Mortgages Gain in Popularity!