Reverse mortgage loans are fast becoming common to an aging baby boom population in America

Reverse mortgage loans are fast becoming common to an aging baby boom population in America

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Reverse mortgage loans are fast becoming common to an aging baby boom population in America. FHA's  reverse mortgage program allows homeowners to take out some of the equity in their home. The program  is a secure arrangement that gives older Americans better financial safety. A lot of seniors make use of a  reverse mortgage to complement social security payments as their income. Since a person’s or a married  couple’s home is most likely their biggest single investment, it's wise to understand more regarding  reverse mortgages and choose if one is right for you.  What is a Reverse Mortgage? A reverse mortgage loan is a special type of home loan that allows you to convert a fraction of your  home’s equity into cash. Basically, the equity that you have worked to accumulate over the years can now  be paid back to you. However, not like the usual home equity loan or second mortgage, reimbursement is 
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Unformatted text preview: not necessary until after the owners are no longer living in the home. FHA's HECM also presents these repayments. Pros and Cons of a Reverse Mortgage A reverse mortgage gives a senior citizen who owns their own home the benefit of staying in their home while collecting payments in exchange for the equity in the home. However, with a reverse mortgage you give up the option of selling your home. Is a Reverse Mortgage Your Best Option? The benefits of a reverse mortgage are the consistent monthly payments as you pull money out of your home. In addition, the best part is that you will be able to continue living in your home. However, the cons include the confusing fees that are charged by reverse mortgage providers. META Description: A reverse mortgage is an excellent way to pull money out of your home without having to obtain a home loan....
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This note was uploaded on 03/06/2010 for the course ECON fin121 taught by Professor Peck during the Fall '10 term at Academy of Design Tampa.

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