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How Reverse Equity Mortgages can Help Senior Homeowners Move Forward

Reverse Equity Mortgages can help senior homeowners utilize a new source for cash income: their home.From paying for home maintenance to taking a well-deserved vacation - even paying for home healthcare expenses - a Reverse Equity Mortgage can provide the means for seniors to move forward with their lives.

With a Reverse Equity Mortgage, homeowners age 62 or better are now able to capitalize on the equity they have in their homes.Unlike traditional home equity loans, Reverse Equity loans do not have to be repaid until the borrower sells the home or permanently moves from the residence.

"We feel that the Reverse Equity Mortgage allows seniors to tap into a cash source previously unrealized, helping them pay unexpected, and even expected, expenses," said Dwight Hart, Senior Vice President and Mortgage Lending Manager for First Federal.

The program is based primarily on three areas:the age of the youngest borrower, amount of equity in the home, and interest rates.The older the borrower, the more money is available.Proceeds from the loan can be distributed as a lump sum, monthly payments, a line of credit, or even a combination of credit and payments. The borrower can select how they will receive the funds - it all depends on the nature of the financial need.

So, what's the catch?There is no "catch," but the borrower must understand that a Reverse Equity Mortgage works differently than a regular loan. Because the loan draws on the equity in the home, there will not be as much equity for the heirs after the home passes into estate.

Since the lender can only derive repayment from the property itself, the borrower and heirs have no responsibility for repayment of the loan.Even if the value of the property doesn't completely repay the debt, the Reverse Equity Mortgage is backed by mortgage insurance, which will pay any difference.

A Reverse Equity Mortgage allows seniors to make one of their greatest assets work for them, rather than going to waste. These seniors are allowing this type of loan to help them move forward and take advantage of the good things life has to offer.

For more information on florida home equity line of credit, or other financial matters visit the links below.

Related Equity and Loan Articles

• Tapping Home Equity
  Tips for homeowners on tapping the equity for home improvements, college tuition, or to consolidate debts
• Reverse Mortgages: Proceed with Care
• Shopping for a Home Equity Loan
  Comparing loan plans will help you get a better deal
• Home Equity Line of Credit - take advantage of the extra cash in your home