If you are age 62 or older and you own your primary residence you are probably eligible for a reverse mortgage and of course you will want to find the best reverse mortgage. The US Department of Housing and Urban Development (HUD) and the Federal Housing Authority (FHA) created a program called the Home Equity Conversion Mortgage (HECM) or reverse mortgage.Best Reverse Mortgage: What to Do
Meeting with a HUD approved HECM counselor is a requirement prior to participating in the reverse mortgage program and will insure that you get the best reverse mortgage. A reverse mortgage has closing costs that are generally higher than a traditional mortgage and you will have to pay those costs. This was designed to help senior citizens to remain in their homes and receive the equity in regular monthly payments as income. With the best reverse mortgage the lender cannot foreclose on your property, regardless of how high the loan gets or how low the equity as you continue to receive those funds.
Best Reverse Mortgage: What to Expect
Much like any other equity loan you can receive a lump sum or a line of credit in which you will use checks or a credit card to use as needed. Another and the most popular choice that older Americans make is to receive a regular monthly payment. This money is yours to do with as you wish and does not have to be repaid as long as the home is your primary residence. You will still be responsible for your homeowner’s insurance and property taxes. You must keep these in good standing as well as keeping your home and property in good repair in order to benefit from the best reverse mortgage.
Best Reverse Mortgage: Why?
Although reverse mortgages have been available for more than twenty five years they have recently grown in popularity. One reason for this is the increase in older Americans due to the ‘baby boom’ as well as the fact that life expectancy is longer. With the economy as it is older Americans are finding their fixed incomes are just not enough to make it. If you are age 62 or older and are finding yourself in this position with financial hardship, the reverse mortgage may be the answer for you. Remember this money can be used as you choose and can be used to pay off existing debt or simply to get through your day to day. You may want to consult a HECM counselor for the best reverse mortgage.
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