subject: The 5 Reverse Mortgage Loan Greatest Benefits [print this page] The main point with their need is, that they do not have enough cash money in use and the only source of extra money is their home equities. The possibility to get the reverse mortgage loan gives still one benefit more. If they have a traditional mortgage left, they will pay that away with the reverse mortgage loan, they will avoid paying the monthly back payments.
1. Foreclosure Refinancing.
If the mortgage payments are 3 months or more behind, the borrower must act quickly and to take contact with the lender. The reverse mortgage loan can save the economy of the borrower, pay away the usual mortgage and save the borrower from the monthly back payments.
This is very wise, because if the borrower shall make a bankruptcy, his credit score will drop by 250 or 300 points for 10 years. Additionally he will lose the home. So the jump from this situation towards a healthy economy is honestly difficult.
2. Reverse Mortgage Loan And Medicaid.
The reverse mortgage payments can influence your eligibility for the Government benefits, like Medicaid. A general rule is, that the income from the reverse program is not counted as an income, if the money will be spent during the same month as it has been received. Ask more from the federal counselor.
3. All Costs Will Be Paid, When The Loan Will Be Closed.
Because there is no monthly back payments, all costs plus the capital will be paid back, when the loan will be closed. This happens, when the borrower will move permanently away, sell the home or die. Then the home will be sold and the money will be used for these payments. The rest belongs to the borrower or to his heirs.
4. Keeping The Old, Dear Home.
So the question is not only about the money, but also about memories, old neighbours and about the dear old home. If a senior thinks, that the old home is too big to him, but he is not willing to move away, the reverse loan can give the solution. He gets the cash out, to buy a home for a child for instance, but he can proceed to live there.
5. The Federal Counselor.
The U.S.Government has built up the so called counselor network with the idea, that these reverse mortgage experts have only one job, to guide senior American, who want to take this loan type. It is important that the counselors are not in the payrolls of any lender, so that they are independent and free to share guidance.
