Options for Seniors in an Unstable Economy: Reverse Mortgages

The economic struggles of America has faced recently have put many senior citizens in trying situations.

Utah, UT (prHWY.com) August 23, 2012 - The economic struggles of America has faced recently have put many senior citizens in trying situations. Many are aware of and utilize services such as Medicaid and Social Security, but not as many have, of yet, discovered the process of applying reverse mortgages to their homes. Depending on factors such as age and equity, seniors may be eligible to get either a lump sum or monthly payments from a reverse mortgage.

What is a reverse mortgage?

A reverse mortgage involves a senior citizen receiving payments for their home. Lenders are willing to participate in reverse mortgages because the mortgage is paid off when the senior decides to move or passes away. Using a special calculator, seniors can enter their age, home worth and equity information to determine their eligibility for reverse mortgage money. Clients may choose to either receive their money in a single payment, or a lump sum, or in monthly installments over time. For seniors that are interested in a reverse mortgage, there are many free guides and companies available to help them determine their best plan of action.

What are the pros and cons of a reverse mortgage?

A clear pro of reverse mortgages is that the senior receives money. Using a reverse mortgage calculator which takes into account age and equity, any senior citizen may determine how much money they are eligible for under a reverse mortgage program. Another benefit is the fact that seniors may still leave their homes and equity to loved ones after their passing. FHA regulations will prevent the senior from ever owing more than their home is worth, so both the senior and their children are protected. All equity can be passed on to children or any others the senior designates at the time of their passing. Reverse mortgage specialists work with Medicaid Cons of reverse mortgages include adding closing costs to the balance of a senior's mortgage and an increasing payoff due to the accrual of interest over time. There are professionals available to guide seniors through both the pros and cons, with free guides, free reverse mortgage calculator and paid professional services.

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Tag Words: reverse mortgage

Categories: Finance

Press Release Contact
Mark Schow
Company Name: Reverse My Mortgage
Phone: (801) 450-4143
Email: mhschow@gmail.com

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