A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence.
To be eligible for a reverse mortgage, HUD's Federal Housing Administration (FHA) requires that the home be a primary residence and the borrower is 62 years of age or older, own your home outright or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan.
There are 5 ways to receive the money from the equity your home when you choose a reverse mortgage.
There are 5 ways to receive the money from the equity your home when you choose a reverse mortgage.
• Tenure - equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
• Term - equal monthly payments for a fixed period of months selected.
• Line of Credit - unscheduled payments or in installments, at times and in amounts of borrower's choosing until the line of credit is exhausted.
• Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
• Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower.
• Term - equal monthly payments for a fixed period of months selected.
• Line of Credit - unscheduled payments or in installments, at times and in amounts of borrower's choosing until the line of credit is exhausted.
• Modified Tenure - combination of line of credit with monthly payments for as long as the borrower remains in the home.
• Modified Term - combination of line of credit with monthly payments for a fixed period of months selected by the borrower.
Reverse mortgage options have become a popular choice of many seniors in the past to alleviate retirement financial woes because it gave them immediate access to their home’s equity, allowing them the extra money for such things as increased costs of medicine and healthcare insurance.
As stocks began to decline so began the rapidly falling real estate prices reached the sharpest decline in the history of the S&P Real Estate Price Index stripping away years of home equity resources.
The housing market continues to nosedive nationally and large mortgage investment companies run for cover creating a shortage of mortgage money. Tightened credit restrictions came quickly on the heels of the collapse of Bear Stearns disqualifying many individuals from any type of mortgage financing. A sharp decline in equity values, a volatile stock market and lack of sufficient retirement resources has forced many seniors to look elsewhere for needed income to keep pace with rising expenses.
According to the National Committee to Preserve Social Security and Medicare, Social Security benefits comprised 39 percent all income to seniors 65 and over. Only 12% of income was derived from assets (12 percent)and a scant 19% came from pensions both Government and private leaving an alarming number of seniors having to work to make ends meet.
One such case is Lester G., a 75 year old veteran who spent 30 years working as a foreman for a furniture company. His company retirement plan pays him slightly less than $30 per month. Between his retirement and social security checks Lester finds it necessary to continue to keep working just to pay for his health care insurance.
Other seniors in growing numbers are seeking to supplement their income using the technology of the Internet. Some have turned to eBay and more have turned to MLM and Internet marketing. Marketing on the Internet offers a unique opportunity, a chance at earning a sustainable income that has the ability to supplement or replace other means of generating needed retirement funds.
Unfortunately many of their efforts end in failure either due to the difficulty of the programs and the dishonesty of the companies/promoters. These failure rates are unacceptable but there is a solution that may just be the answer for your income needs. That solution is called Its Good Business and it is capturing the Internet on a global scale because it has been breaking all records by producing streams of passive long term residual income coupled with a zero failure rate.
If you are seeking to supplement your income without adding to your debt then you should take a look at the impressive cooperative business and marketing model of Its Good Business.
Visit http://itsgoodbusiness.net for more information on ways that could improve your financial health.
RH Sterling
Case Statement Copywriter
Skype: rhsterling
570.655.0522
Case Statement Copywriter
Skype: rhsterling
570.655.0522
