The growth story of reverse mortgage has been quite outstanding and it is highly popular amongst elders who own properties and homes. This is because there are some built in advantages as far as this financial product is concerned. There are quite a few such benefits and it would be interesting to have a look at a few of them.
- As mentioned earlier, it does not require repayment either on a monthly basis or by other regular repayment methods. The loan becomes repayable only after the borrower either dies or moves out. The borrowers have the flexibility of getting the money as a lump sum. Alternately they can go in for a line of pre-approved credit or also opt for a monthly payment depending on their specific needs and requirements.
- It has become quite popular with elderly people and can be used as a means of planning their retired life. Around two decades ago this loan was not very popular and many borrowers considered this as the last resort. However, today where the lifespan of elders has increased it is quite possible that they could live 20 years and beyond after retirement. Hence it is a wonderful tool for ensuring a steady flow of income so that their living standards continue to remain decent. For many it certainly has become a lifeline to say the least.
- It helps the elderly people to have ready access to cash. It could come in as a great helping tool for elders and ensure that they are able to maintain the same lifestyle which they had when they were financially productive. Many retired Americans today are not well prepared for retirement. A majority of them are able to save only around $5000 for their retirement which is woefully inadequate. For them there is no doubt that going in for reverse mortgages could be a great helping hand.
- No repayment required: Since there is no repayment required the money could come in very handy. It could help the elderly people to repay some troubling debts, get rid of recurring payments and more importantly ensure that the lifestyle stays either the same or gets enhanced as they become aged.
- Helps clear existing mortgage loans: It does away with the need for OKC mortgagerepayment against existing loans. There are studies to prove that almost 50% of the funds generated by elderly people through reverse mortgage loans are used to repay the outstanding balance against their mortgage loans. Hence, in one stroke at the twilight of their lives the elderly people will be able to keep their loan slate clean and be free from stress and tension associated with such expensive repayments. It also goes a long way in helping elderly people to also get rid of their other high cost debts such as credit card dues, personal loans, OKC auto loans and other miscellaneous borrowings. It well and truly enables them to start their retired life on a clean slate. They can certainly look forward to retired life with hope and confidence because their financial uncertainties are addressed because of reverse mortgages.
Oklahoma City, OK
Phone: (405) 230-1328