Reverse Mortgages Are Gaining Popularity
A reverse mortgage is an instrument that allows aging homeowners, 62 years of age and older, to downsize their homes without tapping into their existing equity and going deeper into debt. You can take out a loan on the new home, take your existing equity and bank it, and skate by for a few years with no mortgage payments. It’s an ideal solution for fixed income elderly couples who are finding it more and more difficult to get by in the home that they’ve lived in for so many years.
Reverse mortgages are popular because they protect a lifelong of hard work and risk. If you have a lot of equity built up in your home, but your home is too large for your current needs, you may not want to sell just so you can go right back into debt. Since the first few years of a mortgage are spent paying off interest, it’s a losing proposition for folks who may not be able to enjoy a home after the biggest part of the expense is paid off. You can enjoy a low-interest loan that can be paid off after a sale of your house in a few short years and enjoy the low interest rate that comes with it.
Reverse mortgages, for many couples are a godsend.
