mortagesandforeclosures

by Shawn Everett

In 1989 HUD, The Department of Housing and Urban Development announced the reverse home mortgage initiative, which is also know as the home equity conversion mortgage. This initiative was created to help seniors liquefy over 4 trillion dollars of equity earned by paying off a first mortgage.

Recently there has been a rise in the interest in obtaining this type of loan and reverse home mortgages have become extremely popular with seniors as they plan their retirements in a suffering economy.

Essentially, a reverse home mortgage will pay you to stay in your home and keeps paying as long as you remain in the home as a primary resident. With a reverse home mortgage seniors are able to freely spend these funds at their discretion.

There is an increasing need for many seniors to have access to greater funds than they are collecting from Social Security. The rising cost of health care and prescriptions is one major factor causing a financial strain to the over 62 population.

Over 12.5 million seniors now own their homes free and clean and now have the ability to tap into these funds and access them now, without limitation.

With a traditional mortgage, homeowners make payments to the mortgage company monthly with interest over a set period of time. With a reverse home mortgage, the homeowner receives either a monthly payment, lump sum payment, or line of credit from the lender.

You are not required to pay this back until the homeowner no longer resides in the home. If you move or sell the home, the funds you received through the reverse loan would come directly out of the homes equity upon the completed sale. The loan does not need to be paid back as long as you live in the home.

A borrower cannot be paid more than the appraised value of the home and therefore cannot owe more than the value of the home at the end of the loan term. The funds received from a reverse home mortgage can be used at the discretion of the homeowner.

Many seniors use the funds they receive to cover medical expenses, daily living expenses, home improvement expenses, or as a cushion to make retirement more comfortable.

With a reverse home mortgage you can feel comforted in the knowledge that all the hard work you put into paying of your first home mortgage can be accessed now. These funds can help provide security and comfort that will support you in your senior years ahead.

About the Author:

Getting a Reverse Home Mortgage is easy when you have the right information. Visit ReverseHomeMortgage101.com for more Reverse Mortgage Information, including Interest Rates, Quotes and a full listing of Reverse Home Mortgage Lenders in your area. I've found this site to be a great resource for anyone asking the question, What is a Reverse Mortgage?.

Get all the information and photos:: http://mortgagewide.info/reverse-home-mortgage-loans-planning-for-your-retirement/