Seniors Are Interested in How a Reverse Mortgage Works

by on January 29, 2012

How does a reverse mortgage work – Seniors in or near retirement are becoming curios about the reverse mortgage program, those who are 62 years or older will be able to access their home’s equity though the HECM reverse mortgage.

Reverse mortgages how they work – the reverse mortgage programs are for seniors who own their homes and have equity available in them (equity can be calculated by taking the value of the home and subtracting any outstanding debts/liens against the home.)

Seniors who qualify can enjoy the benefits of accessing their homes equity at historically low interest rates, while never having to make a mortgage payment, keeping ownership of the home, and creating a new income source from the homes existing equity.

There are many reverse mortgages pros and cons – seniors should review the program and be familiar with how it works for them. The reverse mortgage is now an affordable option to tap into the equity in retirement thanks to the HECM saver program and many banks/lenders bringing down their origination fees. With the current market conditions right now is a great time to start learning more and even comparison-shopping some lenders for a HECM loan.

{ 4 comments… read them below or add one }

Peter February 22, 2012 at 3:47 pm

great post. reverse mortgages are a good way for senior to stay in their house and also have money to live on
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Peggy May 13, 2012 at 6:43 pm

Reverse mortgages does have its advantages like helping seniors pull the needed cash using the home’s equity without incurring monthly expenses. However, seniors need to make sure that they are aware of the pitfalls of this kind of mortgage before plunging into it.

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Richard Hughes July 4, 2012 at 11:02 am

Good post. I didn’t even know reverse mortgages existed until now!

Seems like a great way for seniors to be able to remain in their home, yet have the cash to enjoy their retirement in comfort and peace.

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fran March 19, 2013 at 1:44 pm

Reverse mortgage loans are good if you do not have a home equity loan. Some people like reverse mortgage because they have no loan payments.
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