Reverse Mortgages Not Affected By Mortgage Crises

11/07/2007

posted by N. Sioris

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With all the alarming headlines lately regarding the mortgage crises and the rise in home foreclosures nationwide, you might think that anything and everything having to do with a mortgage would be bad news for consumers. However, that is not the case for someone that is in the market for a reverse mortgage.

The Reverse Mortgage market is very strong and economically sound. If you are a senior homeowner 62 or older and in need of supplemental income or simply want to payoff your existing mortgage, now is a perfect time for you to take out a reverse mortgage. If your current mortgage balance is relatively low in comparison to the value of your home, you are a good candidate for a reverse mortgage. You can effectively give yourself an immediate monthly raise in income, by no longer having to pay out that monthly mortgage payment. In addition, if there is more equity after you pay off your current mortgage balance, you can receive monthly supplemental income from the residual equity in your home, or you can take the remaining equity as a lump sum payout to you, and use it as you wish.

Reverse Mortgages can be a bit complicated to understand at first glance. Therefore, anyone interested in applying for a reverse mortgage must complete HUD or AARP approved reverse mortgage counseling before an application can be processed. The counseling insures that the senior borrower has a complete understanding of how the reverse mortgage works. The counselor will instruct the borrower on the details of the reverse mortgage as well as discuss possible alternatives other than a reverse mortgage. Once the counseling is completed and a certificate is issued to the senior, the loan application process can begin. If you are considering a reverse mortgage or want to learn more about them, you can receive a no obligation reverse mortgage evaluation and see what kind of positive financial impact it might have for you and your family.