Why a Reverse Mortgage is an Excellent Financial Product
When you’re wondering how the neighbors across the street just purchased a new car, despite having visited the hospital for a lengthy period recently, chances are they have obtained a capital infusion from a reverse mortgage.
A reverse mortgage is an excellent financial product that millions of Americans have already utilized. It is a financial product that takes into account positive past decisions. For many, in order to own a home, it requires a determination to see and property and declare it a good investment. Having done that, the future homeowner often reaches out to a lender to obtain a traditional mortgage.
A traditional mortgage is characterized as having fixed reoccurring payments over a set duration of years. The lender will charge interest on the loan. After the duration of years agreed upon — often between 15 to 30 years — the homeowner actually owns the home. An accomplishment like that provides a feeling of relief and nirvana.
A reverse mortgage differs from a traditional mortgage in that rather than the homeowner paying the lender, the lender pays the homeowner. How it works is that equity in the home is traded for advanced payments. It isn’t necessary to pay back the loan until selling the home, which can be because your moving to a retirement home, downsizing into a smaller space, or die.
So what’s the catch?
To make a long answer short, there is no catch. This financial product is only for persons over the age of 62. Our most common customers are seniors who need additional income to supplement their retirement funds. Unfortunately, their financial advisers may have not done a good job in their preparation for retirement.
Unforeseen events can and will occur, such as surgeries and other medical expenses. For instance, one of our previous customers developed arthritis on their hand. When walking down the stairs one morning, the gentleman stumbled, tried to grab the rail but couldn’t hold on due to arthritis, and tumbled to the first floor landing. Needless to say, he had to have a surgery on his right knee.
This was no inexpensive fall.
The medical process began in the emergency room. Soon, the gentleman had surgery on the patella, which was fractured from the fall. After a three-day stay in the hospital, he was able to leave by wheelchair. At this point, he developed significant medical bills that required repayment in the future.
As part of the recovery, the doctor prescribed him to attend physical therapy. This lasted for nine months, and didn’t full heal for over two years. By this point significant medical bills built up. The gentleman came to our office and received five-star service. We helped him obtain a cash infusion to pay the portion of his medical bills that his insurance company wouldn’t touch.
For our company, customer service is synonymous with success. We treat each customer like family. While the gentleman chose a lump sum payment, there are other options that can be considered, which are the following:
• Single-purpose reverse mortgage is traditionally the least expensive option. When meeting with the lender, a decision will be made as to how the funds can be used. Often times, it is for one specific reason, such as to pay for medical bills.
• Proprietary reverse mortgage takes into consideration the value of the home. A higher disbursement of payment is available for people who have a home of high value. The appraised value is the method that determines the home value.
• Home Equity Conversion Mortgages can be used for any purpose deemed necessary and are backed by the U.S. Department of Housing and Urban Development. Having flexibility is important to home owners, making this the most popular option. For instance, the funds from the cash infusion can be allocated to medical expenses and towards a vacation to visit family, such as children and grandchildren that live in a different state.
Our representatives can coach customers to help them decide the preferable method for them. This takes into account their lifestyle, savings and other pertinent information, so as to have a complete picture of the client. If you are like the gentleman mention in the article, or you are seeking a cash infusion for a different reason, great! Call our company today so we can help you take the first step to financial freedom.
To speak with a specialist, please call (888) 547-8308. Our hours are Monday to Friday, from 9 a.m. to 8 p.m., and from Saturday to Sunday, from 12 p.m. to 3 p.m. When speaking with our specialists, feel free to ask any question you may have, because our specialist can provide you with a wealth of information. Alternatively, you can access our website where we answer many frequently asked questions and have a learning center. These pages go more in detail in relation to the most important information on reverse mortgage.