When Does A Reverse Mortgage Make Sense? Loan Love's Article Provides The Answer

PR Newswire

SAN DIEGO, May 6, 2014 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that is dedicated to helping borrowers find home loans that they will love. With first class information, valuable resources and connections to top rate industry professionals, the website has quickly become a trusted destination for current news and expert loan advice. Loan Love is constantly providing loan borrowers with the most relevant information regarding mortgage loan management, and their new article is no different. Their recently posted article, "Reverse Mortgage Advantages: 7 Benefits For Seniors" helps senior home owners answer the question "When does a reverse mortgage make sense?" while giving a practical approach to dealing with reverse mortgages.

How exactly does a home owner apply for a reverse mortgage in the first place? The article states that reverse mortgages are primarily available to senior home owners, specifically those of age 62 or older. The article provides more on the requirements with the following:

"Once targeted primarily at older home owners in need of improved cash flow with few alternatives, today's reverse mortgage programs hold some benefits that may appeal to a wider group of homeowners. Reverse mortgages are typically available for those owning a single-family home or a multi-family unit (duplex, triplex or quad only) as long as one of the units is occupied by the borrower. The program is also available for certain condominiums or manufactured homes.

"What separates reverse mortgages from other common mortgage loans is that repayment is only owed (with interest) when a homeowner moves out, sells their home, or dies. A home owner may also be liable to loan payments if they fail to pay property taxes. Usually when the loan payment is due, the homeowner's heirs will be the ones to payoff the balance and sell the home.

What makes reverse mortgages popular in over 600,000 households today however, is its numerous advantages which the article goes into detail of each. For example, one of the benefits reverse mortgages has to offer senior home owners is the flexibility offered with the loan. Home owners are not required to use their loan for any specified reason; This can range to practically any expense. Whether it is used for home improvements or the home owner's health care, there are no imposed limitations for a reverse mortgage. Another benefit of a reverse mortgage is that home owners are also protected from insulation, meaning they are unaffected by a decrease in their home's value which would otherwise require them to pay more in the end.

Loan Love's article also mentions to loan borrowers that if they seek a reverse mortgage from the federal government, these is only one currently offered. The article explains: "While there are a number of reverse mortgages available in the marketplace, only one is offered by the federal government. Known as the Home Equity Conversion Mortgage(HECM), choosing this mortgage means your reverse program will be insured by the federal government. You must go through an Federal Housing Administration (FHA) lender to participate in this program.

"Reverse mortgages are becoming more popular for home owners and it comes off as no surprise. The article finishes by saying: "In the past, only homeowners who had no other means of improving their financial picture were advised to take out a reverse mortgage. This was because of the high upfront fees involved, which were sometimes as high as 5 percent of the total loan amount. However, there are now more options available to seniors. New types of reverse mortgage products generally have lower upfront borrowing fees than those of the past.

"For more information on reverse mortgages, please visit LoanLove.com for the complete article.

Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, contact@loanlove.com

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