Reverse Mortgages Provides Cash Infusions for Seniors
Do you need more money?
Many seniors over the age of 62 often find themselves in a situation where they are house rich but cash poor. Thereby seeking the financial tool known as a reverse mortgage. Reverse mortgages provides cash infusions for seniors. The most common American dream is to have a family and to own a home for the family to live in. The traditional mortgage has been known to make this dream a possibility, which is similar to a reverse mortgage. Historically, home values increase over the lift of their ownership, making them an excellent investment.
Due to excellent foresight, seniors often purchase properties in their younger years. The most common method to acquire the home or apartment is often through the use of a traditional mortgage that extends for 20-to-30 years, where they diligently pay off the money provided by the bank to purchase the property.
However, a problem arises when seniors surpass the age of 62 and face problems that throw a wrench into their carefully thought-out plans. Alexander Davis and his wife Michelle Davis are an example of one of our prior customers who were faced with a problem that required a cash infusion via a reverse mortgage. A long time smoker, Alexander discovered from his doctor that he had lung cancer.
Lung cancer made a significant dent on their financing, being that the Davis family did not save for the possibility of cancer. While it is difficult to put a price on good health, the Davis family had no choice and had to pay significantly. For his successful treatment, Alexander owed the hospital about $25,000. This money was initially designed for travel and living expenses — such as seeing their grandchildren during Christmas — but was allocated for the medical bills.
This is a scary proposition because both Alexander and Michelle worried about the cancer returning and how that would impact their remaining money. To help pay for the medical expenses, the couple took out a reverse mortgage — an excellent financial tool that many Americans use.
A reverse mortgage is similar to a traditional mortgage, but rather than the person paying the bank, the bank pays the person. How is this possible, you might ask? Due to the foresight of using a traditional mortgage to purchase a property, one allows the option to receive income based upon that decision. The equity in the home is converted into cash that can be used for any purpose deemed necessary.
Types of Reverse Mortgages
The following are three of the most popular types of reverse mortgages, according to the Federal Trade Commission are single-purpose reverse mortgages, proprietary reverse mortgages, and home equity conversion mortgages. Single purpose reverse mortgages are considered the least expensive choice. These are limited in their popularity due to the fact few organizations offer these. Commonly, this form of cash infusion is used for one purpose, such as medical bills or to pay for home repairs. Proprietary reverse mortgages are private loans that companies who develop them back. These are recommended for higher-valued properties, for instance, on homes that have a high appraisal. Lastly, home equity conversion mortgages (HECMs) are “federally-insured reverse mortgages and are backed by the U. S. Department of Housing and Urban Development (HUD).” What makes these loans most popular is that they can be used for any purpose deemed necessary, removing a tedious layer of oversight.
As is apparent, each option — whether it be a single purpose reverse mortgage, a proprietary reverse mortgage or a HECM — has their own pros and cons. Our company, Shop Reverse Mortgages, ensures that the choice that you make is the best one considering the lifestyle, finances and goals that the client has.
For Alexander and Michelle, they chose a single-purpose reverse mortgages. The purpose that they used the capital infusion for was for their medical bills. In hindsight, this was an excellent decision because unfortunately, Alexander had a cancer recurrence. While frustrating for the Davis family, Alexander was able to afford the help he needed to fight the terrible medical condition. It was just as expensive as the first treatment, and the single purpose reverse mortgage helped pay the expenses associated with the treatment. Alexander died from treatment, a tragic ending for his wife Michelle.
Michelle decided to move from the home to live with her children following her husband of 30 years’ death. By moving, she paid off the reverse mortgage, while still profiting due to the significant amount of equity that remained in the home. While a sad ending, Michelle was relatively pleased with the reverse mortgage financial product.
The Process for a Reverse Mortgage
If you are looking for a cash infusion, such as the Davis family had, our company is amongst the best in delivering the money that you need. We provide a wealth of information to ensure that you understand how the process works — to learn more, visit our learning center by clicking here or our brief FAQ page by clicking here. On these pages, we answer the most common questions related to reverse mortgages. In addition, we provide information on the questions that need to be asked prior to initiating into a reverse mortgage.
Our representatives are knowledgeable on reverse mortgages. To find out if you qualify, feel free to contact our representatives at (888) 547-8308. Our hours are Monday to Friday, from 9 a.m. to 8 p.m. and on weekends, from 12 p.m. to 3 p.m. EST. During the conversation, the representative can answer any question you may have. In addition, they can provide information on the steps that are taken if you qualify.
These steps include having an appraisal on the home, for instance, to determine the value of the home. Other steps that are explained are deciding which type of reverse mortgage makes most sense and the payout options that are available. Together, our company prides on making the experience simple and convenient. Customer service is paramount to our success, as we receive the majority of our clients by recommendation from our previously satisfied customers.