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Reverse mortgages are one of the biggest growth areas in mortgages
Business These mortgages provide an opportunity for older people to obtain cash based on the equity in their homes or condos. When a reverse type mortgage is used, the lender makes payments to the homeowner at an agreed-upon rate. The homeowner doesn’t have to pay back the reverse payment, but can use the money any way they want. There are many reasons why these mortgages can be a godsend.
A reverse mortgage takes out the cash held in the equity in a home, giving the homeowner the money they need. These
The money is not returned, but, at the end of the loan term, which is usually
Reverse mortgage upon death of the homeowner or sale of the home
The rest is done.
But, why would anyone want a reverse mortgage? Why are more and more Americans
Want to see Reverse Mortgages? In many cases, these are great ways to get a mortgage.
the cash they need. They can be used to pay medical bills. A reverse mortgage can be used to prepare for long-term care.
Many people secure a reverse mortgage to enjoy life. buy an apartment in
a foreign country.
They take vacations and see the world. maybe they want to buy a holiday
Home.
When first created, reverse loans were slow to gain acceptance.
Homeowners were reluctant to step into these types of loans. Reverse mortgages, once they got off the ground and more people understood them, became
Becomes a fast growing debt. In 1989, the federal government began supporting the reverse.
mortgage. The National Council on Aging is promoting the reverse mortgage as a
Great way for home modification, medical care and in-home care to avoid nursing homes. These Loans Can Help Homeowners Prepare
their golden years, whether it’s to live the high life or to make a down payment for a house
remodeling.
There are some downsides to a reverse mortgage. A reverse mortgage can be taken out on many homes.
and condos. At times, this can leave homeowners vulnerable. beware – are
Scam people trying to cash in on reverse mortgages may go door to door to sell them.
Plus, closing costs can exceed $10,000. It is recommended that anyone considering a reverse mortgage should do so
Only after very careful consideration of their financial needs and the needs of those who are to inherit
Home.
Reverse mortgages in particular are predicted to grow even more over the next several years.
Retirement is constantly threatened, as are income and pensions.
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