NEW YORK – 5 Aug, 2017 – Reverse mortgages may not have that stellar reputation in today’s market; yet they are still a very valuable tool for planning your retired life in America.
They help senior homeowners stay in the homes that they own for as long as they want to
They enable them to reduce their expenses and prevent them from exhausting their financial resources
They offer better flexibility when compared to home-equity loans and conventional mortgages
Most senior homeowners of America consider reverse mortgage as the last resort to fund their retirement. This is one of the reasons why they decline many offers made by reverse mortgage lenders, who get in touch with them through reverse mortgage leads. What they don’t understand is that they can actually stop their assets from getting exhausted and preserve them for their future by tapping into their home equity.
Reverse mortgage, as a retirement tool, can be very attractive in a low-interest-rate environment. This can help borrowers take out a higher lump sum amount or a better line of credit that continues to grow throughout the term of the reverse mortgage contract.
Any home owner who is at least 62 years of age can go for a reverse mortgage, provided he can afford to pay his property taxes, home insurance, utility bills and maintenance charges. An existing mortgage is fine as long as the balance is low. In fact, the proceeds of reverse mortgage can be used to pay off the existing mortgage or any other debt that the borrower might have.
There is a limit up to which a borrower can take out a reverse mortgage and this limit depends on his home equity, his expected mortality rate, the prevailing interest rate and the profit margin of the lender. It doesn’t come up for repayment until the borrower moves out of the house, passes away or defaults from paying his property taxes, maintenance costs and home insurance payments.
Reverse mortgage as a line of credit is more popular among the senior borrowers. The reason behind this is that the unused line of credit keeps growing in proportion to the principal limit and the balance loan amount. The borrowers can take how much ever funds they want whenever there is a need. Interest does not get accrued on the unused portion of funds. This gives the borrowers more freedom to plan their finances.
The FHA guarantee to pay back the balance amount in case the loan amount exceeds the value of the home, gives the lenders the confidence that they need while lending reverse mortgages. This is exactly why you may find many such lenders look for borrowers by purchasing reverse mortgage leads. Borrowers also get to enjoy the funds for as long as they live in the house on which they have taken out the reverse mortgage.
The criticism that surrounds reverse mortgages is more about the way in which people use these products. It is essentially “Free Money” which might encourage bad behavior, making the borrowers spend unnecessarily. This is why the Federal Housing Administration makes it compulsory for reverse mortgage borrowers to undergo a counseling session before they sign the reverse mortgage agreement.
A reverse mortgage may not be an option for everyone. The origination fees and the closing costs associated with reverse mortgages are very high when compared to the other alternatives. Also if the borrowers have adequate financial assets to support their retirement, taking out a reverse mortgage for extra liquidity may not be such a wise move. Nevertheless, in cases where the financial resources do not make up for a decent retired life, reverse mortgage could be a valuable tool.
A Non-recourse Loan
Once a reverse mortgage has been taken out, there is no way the lender can make any changes to its terms or demand repayment before the sale of the home or the death of the borrower, irrespective of the changes in the market or the financial situation of the lender. The borrower can enjoy absolute peace of mind.
A flexible option for the borrower
Borrowers can choose whether to receive reverse mortgage as a lump-sum amount or as a steady stream of income by setting up a line of credit. They can either use the money to reduce their living expenses or to pay down the loan and increase their line of credit.
A Tool to maximize returns
With reverse mortgage in the picture the borrower can maintain his investment portfolio intact, thereby maximizing his returns. He will not have to sell his assets when there are downturns in the financial market. It can also help him avoid the consequences of adverse taxes.
Cash strapped senior homeowners can definitely benefit by tapping into their home equity and taking out reverse mortgages. However, it is very important to shop around and compare the terms of a few lenders before deciding on the right one. Given the fact that there are plenty of lenders in almost every state of the USA, homeowners can benefit from the variety of options available. Lenders can get in touch with these prospect by Mortgage Live Transfers from Heritus.
Heritus makes available, reverse mortgage leads for reverse mortgage lenders who are looking for details of borrowers who are eligible to take out reverse mortgages. The details of such leads are doubly verified by the dedicated team of professionals at Heritus so as to offer leads that actually convert, when contacted immediately.
“We have been into lead generation for quite some time now,” says Himanshu Tripathi, founder member of Heritus Marketing. “Use of advanced technology and tools to source, capture and nurture leads helps us offer reverse mortgage leads at very affordable prices to our clients. We offer exclusive and personalized leads as per the requirements of the lenders, so that they can experience maximum benefit from our services.”
Reverse mortgages make it possible for many senior homeowners to lead peaceful retired lives in their own homes, without depending on their heirs for their living expenses. However, it is important to make sure they choose a lender who offers them fair terms, from which they can benefit.
Company Name: Heritus Lead Transfer LLC
Contact Person: Himanshu Tripathi
Country: United States