For fixed-income seniors, the benefits of reverse mortgages are hard to overstate. Home equity conversion loans allow seniors to receive cash for the equity they have in their homes. And, because these loan programs are generally not taxable and do not affect Social Security and Medicare benefits, they can provide a peace of mind to seniors struggling to pay their bills. The best reverse mortgages offer certain features that benefit senior homeowners.
Those applying for a home equity conversion mortgage most likely have expenses they need to cover immediately or at some time in the future. Whether it is a lump sum payout, a series of monthly payments, or a line of credit, the best reverse mortgages allow the borrower to structure payments to meet the unique needs of the homeowner. Similarly, a reverse mortgage does not require the borrower to make monthly payments, increasing the amount of the borrower’s monthly spendable budget.
Further, reverse mortgages insulate the borrower from downturns in the housing market. If a house that secures a reverse mortgage loses value after the loan is granted, the borrower continues to receive the approved amount of cash. Also, while ownership of the home transfers to the reverse mortgage lender on the death or movement of the homeowner, reverse mortgages allow for the family or estate of the homeowner to pay off the loan and retain ownership of the home if they choose.
Because the borrower’s house is the collateral and the borrower does not have to make monthly payments, reverse mortgage lenders do not consider the credit score of the homeowner borrower. That said, the borrower must prove that they have the financial ability to pay the costs of the reverse mortgage loan.
The benefits of the best reverse mortgages are clear. Seniors living on a budget do not have to worry about making ends meet. Longbridge Financial, LLC can help you choose the best reverse mortgage options for your current situation. Contact them today!
