Reverse Mortgage Gives a Life of Dignity to the Aged

By: Antonio Redford

A house is one asset on which a person takes great pride and it is often the result of his life long efforts. It is no wonder therefore that a person would want to hold on to his house and property that he has bought or made with his hard earned money. Even when an unfortunate situation arises where the cash flow is restricted for the house owner he would still like to hold on to his property if he can help it. A mortgage on property is often one of the most common methods that a person uses in case he requires financial assistance. However a mortgage results in the property owner losing ownership rights of the property. The unique concept of a reverse mortgage has helped people overcome the disadvantages of mortgaging a property and now more and more people are going in for the reverse mortgage.

A reverse mortgage is the process of mortgaging your house to some financial institutions that provide this facility in exchange for a sum of money. However the advantages of a reverse mortgage lies in the fact that the house owner can continue top live in the house even after reverse mortgage and continues to have ownership of the property. The facility of a reverse mortgage is only available to the senior citizens who are sixty two years of age or elder. Hence, this is a great advantage that can be reaped by all house owners who have achieved the retirement age. The property under this kind of mortgage continues to belong to the owner till the time of his death and he does not have to repay the mortgage during his lifetime. The amount of mortgage is fixed depending on the equity value of the property.

The reverse mortgage can be taken as a lump sum on the value of the property or even in the form of gradual installments that could be paid to the house owner at regular intervals. This ensures that the borrower has an assured source of regular income from the reverse mortgage on his property. If the owner wants he can also sell off the property and pay back the mortgage amount after calculating the current equity value of the property. This indeed is a great relief to the house owner who can continue to live with dignity in spite of retirement, thanks to the advantages of a reverse mortgage on his property. The property thus put up for mortgage purposes can be mortgaged even for a second or a third time depending on the fulfillment of the required criterion.

Reverse mortgage has opened up a new avenue for many of the retired persons who fall under the requisite age category. They can now continue to live in their own homes till the time of their death and get a regular cash flow without having to worry about the repayment. The house that they had built or purchased with their hard earned money ensures that they are never left helpless even with the onset of old age. Hence reverse mortgage has indeed come as a great blessing to the aged citizens of the United States of America.

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