Reverse Mortgage Benefits - Loan Love Discusses The Advantages For Seniors
April 28, 2014 --
SAN DIEGO, April 28, 2014 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that offers up-to-date information on all the latest news and developments that affect home loan borrowers and the options that they have available to them. The website provides in-depth information in an easy-to-understand format that both experienced and first time home loan borrowers can greatly benefit from. Senior loan borrowers can now be guaranteed that they have the knowledge they need when it comes to making a choice with the home mortgage planning by following Loan Love's new reverse mortgage guide. This guide, titled "Reverse Mortgage Advantages: 7 Benefits For Seniors" gives readers some reverse mortgages benefits and how senior loan borrowers can reap them.
The loan advice website's article begins by saying: "If you are a senior aged 62 and over, and own your home, you may have been curious about television or radio commercials with well-known spokespeople enticing you to borrow against your home's equity with a reverse mortgage. 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."
Commonly, reverse mortgages are available to those occupying a single or multi-family unit house with loan repayment (with interest) being owed after a homeowner moves out, sells their house, or dies. The allure to reverse mortgages has only increased over the years, with an estimated 600,000 households holding a reverse mortgage loan, according to the Reverse Mortgage Lenders association. What makes reverse mortgages appealing can be seen in its many benefits, which the Loan Love article indicates as the following:
- Tax Free
- Place to Live
- Payment Options
While listing each of the above perks, the article also goes into deeper detail how each senior loan borrowers can benefit from each perk. For example, Senior loan borrowers can enjoy insulation, or in other words senior home owners would be protected from paying more for their mortgage loan in the case that their home's market value increases. Reverse mortgages are also tax-free by default. Reverse mortgages are offered in a variety of ways in the marketplace, but only one type is offered by the government, which is the Home Equity Conversion Mortgage or HECM. Loan Love's article expounds on HECMs further with the following:"
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. 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."
Reverse mortgages can be one of the more suitable mortgage options for many senior home owners and the article explains why with this final reminder: "Lower fees have made reverse mortgages attractive even to those who have other financial assets because it has allowed these seniors to delay selling off depressed investments and use a reverse mortgage to improve their cash flow."
To learn more on reverse mortgage benefits, please visit LoanLove.com to read the complete article.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, firstname.lastname@example.org
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