Guest Post: You Can’t Take It With You
September 21st, 2006
Today’s post comes courtesy of Mark Fallon of Sunset Mortgage. Mark touches on a mortgage option for homeowners over age 62.
You can’t take it with you. But a reverse mortgage may present the next best option.
With a reverse mortgage, you can get a loan for cash based on the value of your home, and you do not have to pay the loan back for as long as you continue to live in the house. A reverse mortgage does not have to be paid back until you die, sell your home, or move out of your home permanently. If you pass away, the loan is paid back from your estate; however, your estate will not owe more than the home’s value.
The reverse mortgage is very useful for senior citizens who may have a low, fixed income and need more to live on, or need a large amount of cash for an unexpected expense. This tool allows the senior citizen to get the funds they need without losing their home, going into debt, or taking on payments that are unmanageable. A reverse mortgage takes your home equity and lets you leverage it by giving loan advances to you, paying all loan costs associated with the loan, and providing the leftover equity at the end of the loan to you or your heirs.
Quite notably, the reverse mortgage has become very popular, and during 2004, a record 37,829 HECM (Home Equity Conversion Mortgage) reverse mortgage loans were originated, over twice the number of HECM reverse mortgage loans originated during 2003.
If you have an existing mortgage, you may still qualify for a reverse mortgage based on the amount of equity you have. It is not necessary to own the home free and clear to qualify for a reverse mortgage, but you must continue meet your obligations such as property taxes, insurance, and maintenance.
Contact Mark at Sunset Mortgage for more information on reverse mortgages:
Mark Fallon
Mortgage Banker
Sunset Mortgage
(503) 635-7393
Technorati Tags: mortgage, reverse, lending, housing, homes, seniors, elderly, equity
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1. » From Ron AresR&hellip | September 21st, 2006 at 3:27 pm
[...] Today’s post comes courtesy of Mark Fallon of Sunset Mortgage. Mark touches on a mortgage option for homeowners over age 62. You can’t take it with you. But a reverse mortgage may present the next best option. With a reverse mortgage, you can get a loan for cash based on the value of your home, and you […] Read more… [...]
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