A Reverse Mortgage can eliminate your current mortgage payments

by : Grant Shellhammer

Reverse Mortgages are becoming a popular financial weapon and optionfor seniors across the United States. A reverse mortgage offers thefreedom of eliminating your mortgage payment. In a tough mortgagemarket like we are experiencing now, a reverse mortgage can be a bettersolution than a cash-out refinance or a home equity line.Areverse mortgage provides seniors the ability to transform part of theequity in their primary residences into tax-free income withoutrequiring to sell the house, transfer title, or take on a new monthlymortgage payment or credit line payment. The reverse mortgage got itsname because the payment method is “reversed." Instead of makingmonthly mortgage payments to a lender, as with a conventional mortgage, a lender disburses payments to you.Reversemortgages, similar to a conventional mortgage require closing costs andexpenses. However, the great thing about a Reverse Mortgage is thatthese requirements and fees can be added or included into the mortgage.These concepts allow basically no out of pocket costs for thetransaction. It is important to understand how the costs are determinedand what the fees cover. A Reverse Mortgage Lender or loan consultantcan assist you with a breakdown of all the fees and costs. The smallout of pocket expense is another way a reverse mortgage can bring youfreedom from your current mortgage payments without the high fees of aconventional refinance.Additional security of a governmentsponsored program can give the senior the freedom and stability thatthey are secure. The FHA Home Equity Conversion Mortgage (HECM) iscurrently the most used reverse mortgage product. Other productsinclude Fannie Mae Home Keeper, HECM 100, HECM 150, and the CashAdvantage Jumbo. The final security feature constructed into aReverse Mortgage is the necessity of HUD Counseling. Counseling is oneof the most important consumer security feature added into the program.It requires an independent third-party to guarantee you understand theprogram, and review alternative choices, before you complete yourreverse mortgage application. Senior citizens can attend counselingfrom a local HUD-approved counseling agency, or a national counselingfirm, such as AARP. The above article shows that a ReverseMortgage can give you the freedom of eliminating your current mortgageloan, tap your equity, and access your money tax free. With zero tolittle out of pocket expenses and structured in security featuresHealth Fitness Articles, theReverse Mortgage can be a powerful and secure financial option.