Six questions to ask when Considering Reverse Mortgages

 

Thursday, Mar 26,2009, 12:07:41 PM   Click:

Copyright: Business Wire
Source: Business Wire
Wordcount: 911

Business Editors / Real Estate Writers / Financial Editors

BRIDGEWATER, NJ - (BUSINESS WIRE) - March 25 2009 - Reverse mortgages are a financial tool become increasingly important for people age 62 and older who want to stay in their homes and their retirement fund. And with 78 million baby boomers approaching retirement, the interest will grow. Despite this, many Americans are still unclear on how the work and the reverse mortgage in May when appropriate.

"A reverse mortgage is a loan secured by the value of a house, in case of non repayment of the loan is required until the borrowers leave the house," said Peter Bell, president of the non-profit National Reverse Mortgage Lenders Association. "Although, historically, what was of particular interest to those who have no source of cash income, these days, many new retirees to the examination of a reverse mortgage as option after considering all the other assets they have accumulated. This tool can help a person to avoid taking too early Social Security or defer taxable withdrawals from IRA or 401 (k) balances " .

"Reverse mortgages enable many Americans to age in place" to retire comfortably, "said Donna DeMaio, president of MetLife Bank. "For many people, reverse mortgages are a good way to continue to stay where they are, remain independent and live a more fulfilling life. Modernes planning retirement income is to make the most what you have, and reverse mortgages can be an important element of this plan. "

There are several benefits to obtaining a reverse mortgage. Borrowers can continue to live in the house as long as they wish, and the amount owed to the bank by the borrower when the property is sold shall not exceed the lesser of the mortgage or its sale value. Interest expense, including the starting and closing costs, accumulate until such time, without payment required. As with mortgages, the bank does not have the customer's home: Borrowers retain ownership and are responsible for paying property taxes and home insurance and property repairs.

So when a reverse mortgage make sense? Consider the following questions:


Are you eligible? Are you and any co-owner of the house at least 62 years? Do you own your home and live in your home? These qualifications must be met before a reverse mortgage may even be considered.
Do you have accumulated equity in your home? For individuals and families who repaid mortgages diligently for years, and worked hard to maintain and improve their property, a reverse mortgage is a way to carry out part of the financial value.
Are you satisfied with your current level of retirement income? Many people, retired or retired, found that traditional retirement tools, including the IRA, pension and 401 (k) s, do not provide enough income to comfortably support current or anticipated life and health care spending. A reverse mortgage can provide greater peace of mind and improve the quality of life. Taking reverse mortgage product in regular monthly payments (the "mandate" as an option) that will last as long as you live in the property is a means to boost cash flow each month and generally will reduce the balance of a lump sum distribution when the time comes to repay the loan.
Would you remove your existing mortgage? Many retirees are still paying a conventional mortgage, and therefore have less disposable income they would like at the end of the month. Depending on the amount, a reverse mortgage may repay an existing mortgage, freeing up money for other things. To get a better understanding of your position, the AARP calculator reverse mortgage is available free to www.rmaarp.com.
A reverse mortgage is a better option that a home loan? For many retirees, income and credit terms on a home loan May be a barrier to access to this financial tool. A reverse mortgage does not have these requirements.
Do you intend to go home to your children or other relatives? With a reverse mortgage, the balance must be repaid when the title changes hands. If one of his heirs want to keep the house, May they be able to refinance the loan at that time, but it May be required to sell property to repay the loan. Take the time to openly discuss this issue with your family as an important first step when considering a reverse mortgage. Many families prefer that their children see their parents, experience a more comfortable retirement, rather than setting the priority to obtain the family home, "free and clear."

MetLife Bank, NA (Member FDIC) is a federally chartered bank offering a wide range of banking products and services, including high-yield savings, certificates of deposit, money market accounts, retirement accounts and individual residential mortgages. For more information, please visit www.metlifebank.com, or call the ministry at 1-800-607-0366 Reverse Mortgage. MetLife Bank is a subsidiary of MetLife, Inc. (NYSE: MET), a leading provider of insurance and financial services with operations in the United States and Latin America, Europe and Asia Pacific. For more information, please visit www.metlife.com.

All loans subject to approval. Mortgage financing provided by MetLife Home Loans, a division of MetLife Bank, NA
Equal Housing Lender. MetLife Bank, N. A. Member FDIC



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