Reverse Mortgage Loans Shine Even in the Economic Recession

Recently during a survey, I met Angelene, a retiree of age 73 years. She was really upset over the downward trend in the price of her property and also the increasing interest rates for the reverse mortgage loans. As all of us know, the economic recession badly affected all the regions of loans and investments. The worst affected are the areas of housing. The new stimulus packages have brought fresh life to the housing development loans and investments.

As we know, reverse mortgage loans are totally different from the traditional mortgages. These loans are aimed at helping the senior citizens and retirees by providing them with secured loans considering their home as the collateral security.

In December Angelene got fresh life and her spirit rose with the good news received from the economic front. As part of the stimulus package to rejuvenate the economy, these senior citizen loan amounts have been increased significantly and the associated fees have been reduced with immediate effect. Now an eligible senior citizen of age more than 62 years can borrow the huge amount of up to $417, 000 as the equity of the property. Also the reverse mortgage loans come up with many benefits to the borrower.

o The borrowers can make their financial condition secure without losing the property.
o They need not pay back the loan amount during their lifetime, or as long as they stay in the home.
o There are no pre-payment penalties.
o No tax needs to be paid on cash advance they receive as the loan amount.
o Title of the home is not transferred and the borrower is free to sell the property at any time.
o There is no constraint on the purpose for loan; the cash can be used for any purpose.
o The borrower’s Medicare and social security benefits are not affected by these loans.

Like Angelene, there are thousands of senior people who are relieved with the momentum gained by the new stimulus package. It is really worth to note that reverse mortgage loans shine even in the economic recession.