Reverse Mortgages: When Is One Right For You?

How do you know if a reverse mortgage is right for you? The answer depends on your current financial situation of course.

But other factors such as your medical condition and lifestyle are important in determining whether or not a reverse mortgage is your best choice compared to a home equity loan, a line of credit, or just selling your home.

A reverse mortgage might be worth your consideration in many situations. Some of the common reasons you might get a reverse mortgage loan are if:

  • You have a small first mortgage

  • You own your home free and clear with no debt

  • You need regular income to live on and your home is you major asset

  • You want to stay in your home and have no intention of leaving it

  • Other housing options are unaffordable or not appealing to you

  • You want to be able to take care of major medical expense

  • You want to be able to do home repairs, travel, or help your children

  • You don't plan on leaving your home to your heirs through inheritance

  • You want to relax by knowing that your financial needs are taken care of

    • A reverse mortgage is not for everyone. You may want to avoid a reverse mortgage if you answer "no" to any of the following questions:

  • Will you be able to enjoy the money from a reverse mortgage knowing that the debt on your home is rising and your home equity is falling?

  • Can you continue to pay for property taxes, home insurance, and any home maintenance which will still be required as part of your loan agreement?

  • Can you handle financial burdens if your home equity is partially or completely used up?

  • Do the advantages of owning your home outweigh the disadvantages now and in the future?

  • If you do not get a reverse mortgage do you know what your other options are?

  • Do you understand clearly the terms of your reverse mortgage and the costs involved in obtaining a reverse mortgage loan?

    • As you can see, there are a number of factors to consider and questions to ask before you can determine whether or not a reverse mortgage is right for you.

    Allen Daniels offers a Free Online Video about Reverse Mortgages that shows you How to Cash in With Reverse Mortgages. You can view the video at http://www.ReverseMortgageTips.com/

    In The News:

    Reuters
    US housing agency expands mortgage aid program
    Reuters - 18 hours ago
    WASHINGTON, July 8 (Reuters) - The Federal Housing Administration will loosen its mortgage refinance program to help more delinquent borrowers and those ...
    Facing foreclosure? Help on way Bradenton Herald
    all 17 news articles

    Fed preparing to tighten mortgage lending rules
    Los Angeles Times, CA - 12 hours ago
    ... preparing to adopt new rules designed to curb irresponsible mortgage lending and help some struggling homeowners refinance into more-affordable loans. ...

    Keep ARM now? Good way to get hit with high rates
    Boston Herald, United States - Jul 7, 2008
    It went like this: “Refinance your adjustable-rate mortgage now, if you can.” That’s the logical interpretation of the Fed’s current position. ...

    Refinance.com Expands National Footprint
    Business Wire (press release), CA - Jul 7, 2008
    Refinance.com is one of the nation’s leading mortgage companies with nearly twenty years of mortgage refinancing expertise. The company has assisted ...

    Nashville City Paper
    The Cracks in Congress’s Housing Rescue
    FOXBusiness - 21 hours ago
    Congress’s FHA rule change supposedly will help Fannie and Freddie, since this wing of the government can now refinance loans that Mr. and Mrs. No Income No ...
    Fannie Mae and Freddie Mac shares plunge International Herald Tribune
    all 873 news articles

    The Money Times
    IndyMac depositors pull cash as mortgage woes grow
    guardian.co.uk, UK - 11 hours ago
    But as rates rose and home prices fell, many borrowers found themselves unable to refinance, and defaults surged. IndyMac shares have skidded 99 percent in ...
    IndyMac Downsizing Likely Los Angeles Business Journal (subscription)
    all 317 news articles

    Wall Street Journal
    Paulson Touts Covered Bonds As Way to Boost Homebuying
    Wall Street Journal - 13 hours ago
    ... homeowners to refinance," Mr. Paulson said in the written text of his speech. Covered bonds, which are widely used in Europe, are a mortgage-backed ...
    Paulson Says Collapse In Subprime Mortgage Market Adds Hurdles To ... Trading Markets (press release)
    all 347 news articles

    CNBC
    UPDATE 1-US mortgage refinance applications plunge -MBA
    Reuters - Jun 18, 2008
    ... rates choked off refinancing opportunities and soured the housing outlook, an industry group said on Wednesday. The Mortgage Bankers Association said ...
    US MBA's Mortgage Applications Index Fell 8.8% Last Week Bloomberg
    Mortgage applications down 8.7% last week: MBA MarketWatch
    Weekly mortgage applications fall 8.7% as rates rise BloggingStocks
    Housing Wire - WFMJall 61 news articles

    Mortgage Fears Cast Shadow Over 2 Agencies
    New York Times, United States - 10 hours ago
    One of the strongest warning signs came as the week began, when shares of the nation’s most important mortgage companies, Fannie Mae and Freddie Mac, ...

    Ahead of the Bell: Mortgage Applications
    Forbes, NY - 9 minutes ago
    Refinance application volume grew 4.7 percent, while purchase activity increased 2.8 percent. The mortgage bankers' index, which stood at 100 when it was ...
    mortgage refinance - Google News


    Wind Chimes and more...

    Windchimes for great gifts!

    How to Find the Lowest Rate Possible!

    The quest is on! You're in the market for a... Read More

    Making Sense of Mortgage Speak

    Applying for a home loan can be overwhelming. You will... Read More

    HELOCs and Second Mortgages: Which One Should I Choose?

    Whether you need some extra cash to pay off some... Read More

    Refinancing Your Home Mortgage Loan

    You're considering refinancing your home mortgage loan to save money.... Read More

    Types of Mortgage Interest Rate

    Here is a useful guide to the different types of... Read More

    Applying for a Home Loan

    Applying for a home loan may not be the most... Read More

    Mortgage Pre Approval - Getting Pre Approved For a Home Loan Online

    A pre-approved mortgage is a must in a competitive housing... Read More

    Little Known Secret: Eliminate your Mortgage in 23 years or less!

    Wanna know a little secret? There is an ingenious method... Read More

    Change in Texas Law May Make Reverse Mortgages More Popular

    Texas was one of the last states to allow homeowners... Read More

    Bad Credit Mortgage Loans Online - How Your FICO Credit Score Can Affect Your Loan Approval

    When applying for a mortgage loan when you have a... Read More

    Top 10 Things to Consider on Home Loans

    Here are our Top 10 most important things to consider... Read More

    Guide to Mortgages

    A mortgage is a loan that is guaranteed by a... Read More

    Zero Down Payment Mortgage ? Can It Be Done?

    "I've been renting for years now; I've always paid my... Read More

    Guide to Interest Only Mortgages

    Here is a useful guide to interest only mortgages. An... Read More

    Home Construction Loans

    You can maximize your savings by shopping for a lender... Read More

    Jumbo Home Mortgage Loans - What They Are and Where To Get Jumbo Loan Financing

    A jumbo mortgage is different than a conforming loan. A... Read More

    Home Equity Loans: A Useful Financial Tool

    The investment need of an individual varies with time. Thus... Read More

    Ten Things a Mortgage Processor Must Know to be Effective

    From time to time, we hear a story about a... Read More

    Low Home Mortgage Interest Rate - Finding the Best Mortgage Rate

    Interest rates are at an all time low, making now... Read More

    Home Equity Loan ? When Does Refinancing Make Sense?

    For the last two years, interest rates have been much... Read More

    Mortgage Refinancing - Does Size Matter After All?

    Hopefully your ego has never had to experience the words,... Read More

    Home Equity Lines of Credit - the Basics

    A Home equity line of credit is a loan which... Read More

    For Mortgage-Refinance Help, Get the Best Mortgage Professional, Not a Bank Loan Officer

    When you need a mortgage -- either because you are... Read More

    Mortgage Glossary of Terms

    A brief list of some of the most common Mortgage... Read More

    How Much Interest is Your Home Equity Earning?

    How much interest are you earning on your home equity?... Read More