Reverse Mortgage Loans

Reverse Mortgage Loans are a safe way for seniors to access home equity without making monthly mortgage payments. HECM Reverse Mortgage Loans, endorsed by HUD and insured by FHA are the most popular of the reverse mortgage loans offered today. The purpose of reverse mortgage loans is to allow you to get cash from your home, without obligating you to make monthly mortgage payments in order to do so. Reverse mortgage loans do not require any repayment for as long as you live in your home.

How Reverse Mortgage Loans Work

Reverse mortgage loans work exactly the opposite of a "forward" or regular mortgage loan. One way to view reverse mortgage loans is to think of them as rising debt - falling equity. Whereas, a forward mortgage, like the one you took out years ago when you first bought your home, was a rising equity - falling debt loan. Although it was comforting to know you were building up equity over the years and working toward becoming mortgage free, now that you are there, you may be feeling house rich but cash poor. Yes, the home is paid off or nearly so, but you may be having difficulty making ends meet from a cash flow standpoint. Your largest asset might very well be your home, but you have no way of accessing the cash to help you live a higher quality life or to simply keep up with inflation. Consequently, now might be the perfect time to consider reversing your mortgage in order to get the financial freedom you deserve.

Alternatives To Reverse Mortgage Loans

Before reverse mortgage loans were available, you would have had only two alternatives to get cash from your home: One, you could sell your home and pocket the cash. But then where would you live and how much would that cost? Or two, you could take out a new forward mortgage to access your home's equity. But then you would have monthly mortgage payments to make all over again. In addition, a new forward mortgage will require you to qualify for the loan based on income and credit. If for some reason you are unable to make the payments in the future, the lender would have the option of foreclosing on your home and you could lose your home completely. Many senior homeowners don't find either of these options appealing or even doable for some.

Reverse Mortgage Loans vs. Forward Mortgage Loans

Reverse Mortgage Loans, in contrast to forward mortgage loans, do NOT require any monthly mortgage payments as long as you live in your home and keep up the maintenance, property taxes and insurance. Consequently, you cannot lose your home for not making the mortgage payments, (because there are no payments). Reverse mortgage loans do not require any income qualifications. In fact, you could have no income at all and still be able to get a reverse mortgage loan. You can think of reverse mortgage loans simply as a loan against your home that you do not have to pay back for as long as you live in your home. With reverse mortgage loans, you now have the ability to turn the idle equity in your home into tax-free cash without having to sell your home or repay the loan each month. You can now spend down your home equity while continuing to live in your home without monthly mortgage payments.  After all, It's Your Money.

Many seniors, once they understand the full concept of reverse mortgage loans and complete AARP-HUD approved counseling, find that reverse mortgage loans are nothing to be feared and can be a godsend for many. Although the majority of reverse mortgage loans do become rising debt - falling equity loans, in some cases, home appreciation could out-pace the reverse mortgage loan balance if the home's value increases more rapidly than the debt rises.

As you can see reverse mortgage loans are not that complicated. Reverse mortgage loans are a safe financial planning tool. Reverse mortgage loans are a mainstream way for you to plan your future and live a more secure life.

See How Reverse Mortgage Loans Can Help You Today!