Reverse Mortgage Rates: Seniors Discover an Alternative to Downsizing: The Reverse Mortgage Loan
Today, many seniors are looking for a method of income beyond retirement funds and social security.
(prHWY.com) August 29, 2012 - Utah, UT -- Today, many seniors are looking for a method of income beyond retirement funds and social security. Some choose to sell their original home, downsize to a smaller home, and then use the proceeds to fund necessary expenses. Others would rather stay in their own homes and take out a reverse mortgage loan to cover their finances. Reverse my Mortgage, A Utah LLC that specializes in helping seniors determine their qualifications for a reverse mortgage loan, is currently offering a free reverse mortgage calculator to aid individuals in discovering their eligibility for certain
reverse mortgage rates.
Choosing a Reverse Mortgage Loan
Downsizing can be the most monetarily efficient way for seniors to obtain money from their home. Unfortunately, selling a home can be both time and energy consuming and removes individuals from a home they have long been attached to. As a result, several seniors are turning to reverse mortgages to gain necessary finances in their later years. A reverse mortgage allows a senior to convert a portion of home equity into cash. Individuals applying for a reverse mortgage can choose between three types of mortgages: single purpose reverse mortgages, HECMs, and proprietary reverse mortgages. Single purpose reverse mortgages are just what they sound like. Individuals can use them only for a single purpose, specified by the government or another non profit lender. HECMs and proprietary mortgages have higher reverse mortgage rates, but have no financial/medical prerequisites and can be used for any purpose. Several seniors today use the money from their reverse mortgage to finance home repairs, add to their retirement income, or help pay for other later in life expenses. Reverse mortgages have no monthly loan payments and only are required to be paid off when the individual dies or moves. Usually, when the individual dies, remaining heirs are able to sell the property to pay off the loan.
Calculating
reverse mortgage rates
Several seniors today are very interested in the idea of a reverse mortgage loan and wonder if they would be able to apply. Reverse my Mortgage currently offers a free online reverse mortgage calculator that would determine an individual's eligibility for a reverse mortgage loan and the amount they are eligible for. By inputting details regarding their age and housing status, seniors are able to receive a quick reverse mortgage rate estimate. Calculator users can figure this reverse mortgage amount as either a lump sum or an annuity style monthly payment.
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