{"id":2017,"date":"2017-03-18T00:00:51","date_gmt":"2017-03-18T00:00:51","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/?p=2017"},"modified":"2017-03-18T00:00:51","modified_gmt":"2017-03-18T00:00:51","slug":"what-is-a-reverse-mortgage","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/what-is-a-reverse-mortgage\/","title":{"rendered":"What Is a Reverse Mortgage?"},"content":{"rendered":"

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By American Advisors Group<\/p>\n

As you pull into your driveway and up to your garage, you take a good long look at your house.\u00a0 The fresh exterior paint<\/a> you had applied about a year ago still glistens in the sun, and the roof shingles<\/a> you had installed still sit perfectly in neat rows.\u00a0 The bushes that line the driveway are perfectly manicured, and have grown twice as tall since the day you planted them as little shrubs.<\/p>\n

Throughout the years, you have thoughtfully added an upgrade here, and an enhancement there, knowing you are investing in one of your biggest assets.\u00a0 Slowly but surely your equity is growing, and one of these days, you may want to cash in on your investment in order to help you supplement a fixed income or increase your cash flow in retirement.\u00a0 Fortunately, you have access to a powerful financial tool to help you do just that.<\/p>\n


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The History of Reverse Mortgages<\/u><\/strong><\/h2>\n

In the early 1960s, a new loan<\/a> type emerged in the mortgage<\/a> industry and steadily gained in popularity due to a few distinctive features.\u00a0 The loan was known as a reverse mortgage, and for the first time, borrowers were introduced to the possibility that they could access their home equity without having to sell their home or pay a monthly mortgage payment. This unique home equity loan is still available today and continues to help seniors achieve financial independence.<\/p>\n

Designed for the senior homeowner age 62 or older, a reverse mortgage defers repayment until the borrower permanently leaves the home, as long as all loan terms are met. With no required monthly mortgage payment to meet, borrowers are relieved of one of their largest monthly expenses, thus giving them more control over their finances. If the borrower moves or passes away, the funds<\/a> from the sale of the home would repay the reverse mortgage loan in full, and any remaining equity is returned to the estate.<\/p>\n

In addition to its beneficial features, consumer safeguards and federal regulations have been added over the years in order to improve the borrower experience. Today, the government-insured Home Equity Conversion Mortgage (HECM), which accounts for approximately 90 percent of all reverse mortgages in the U.S., is a federally-insured non-recourse loan. HECM reverse mortgages require that the borrower undergo independent, third-party mandatory counseling. Borrowers now must also go through a financial assessment by the lender to ensure they are capable of meeting the financial obligations of a reverse mortgage loan associated with payment of property taxes, insurance and home maintenance. Bolstered by these important safeguards and equipped with a number of valuable and unique features, this loan has helped thousands of seniors live financially independent and comfortable lives.<\/p>\n

Why You Should or Shouldn\u2019t Get a Reverse Mortgage<\/u><\/strong><\/h2>\n

A reverse mortgage loan is not for everyone, so take the time to closely review the following considerations.<\/p>\n

You may not want a reverse mortgage if:<\/strong><\/p>\n