What are the Major Benefits of Reverse Mortgages That You Should Know?

1. What are the Major Benefits of Reverse Mortgages That You Should Know? It may be common to think of mortgage only as a long-term expense. Reverse mortgage can be extraordinarily useful particularly for older US people who earn small monthly revenue or have savings yet with a great sum of equity in terms of real estate. Most of us spend a great portion of our adult lives paying a mortgage, but there’s a certain point at which the opposite becomes possible – a mortgage can pay you. This is called as a reverse mortgage. Instead of paying your home mortgage every month, you receive money from your lender which can be used for other vital needs. How Does a Reverse Mortgage Work? Reverse mortgages have been designed for people over 62. As per laws only one applicant should have reached this age for reverse mortgages for approval. The lender can take on monthly payments each month instead of the borrower. And the loan is paid back later – either once the borrower passes away or moves out of the home. This however doesn’t remove all expenses for the borrower, who has to pay insurance and any taxes or home maintenance fees, but it also reverses the largest fees. Instead of paying money every month, borrowers are actually sent money by the mortgage company.

2. What are the benefits of reverse mortgages? There are benefits of a reverse mortgage for those who qualify: 1.There is no monthly mortgage payment. You can easily focus on paying down other debt or even settling your outstanding current mortgage debt even if you still live in your home. 2.There is more financial flexibility as there are no mortgage payments plus extra cash flow. 3.The extra cash that comes in from a reverse mortgage allows many people to hold off on taking Social Security or 401(k) benefits for a few extra years, which have other financial and tax benefits. 4.People who go for a reverse mortgage are required to see an independent financial counselor to ensure they’re in a comfortable situation and they can handle easily. This can have several tangential benefits as well, even beyond the reverse mortgage itself. We offer a wide range of mortgage loans and options for first-time homebuyers. As a premier mortgage company, we offer best Mortgage Rates that cater to borrowers all over Utah. Many consumers are not aware that a reverse mortgage can actually help protect them from falling home values. Original mortgages-that-you-should-know.html Source: http://www.apsense.com/article/what-are-the-major-benefits-of-reverse-