Juhani Tontti offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Content Crooner (www.ContentCrooner.com) has distributed this article on behalf of the author. Content Crooner does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: Get Reverse Mortgages Pros And Cons - A Counselor Can Guide You Author: Juhani Tontti Category: Loans, Mortgage, Mortgage Word Count: 495 Keywords: reverse mortgages pros and cons,how reverse mortgages work,senior reverse mortgage,reverse mortgage Author's Email Address: [email protected] Article Source: http://www.contentcrooner.com ------------------ ARTICLE START ------------------
The idea of these senior loans is to help seniors by giving them a possibility to use a part of the home equity and to turn it into monthly extra cash. The qualification rules are simple. A senior of age 62 or over, who owns a home, where he has equity left, will automatically qualify. 1. What Are The Pros? I know that it is not quite fair to start the reverse mortgages pros and cons from the cons, but I do it anyway. The major disadvantage of this product is, that it is more expensive, than the usual mortgage. Sometimes seniors seem to think, that because this loan will be paid back at the close, this is a free money, a money from thin air. That is not true. There are actually many expenses of which some can change during the running time, like the interest rate. I cannot give you exact figures, because only the lender or the counselor can calculate the costs according to your circumstances. However, to give you a hint about them, these are the items: compulsory mortgage insurance, origination fee, title insurance, the title, county recording and attorney fees, the real estate appraisal, the survey and the monthly service fee. 2. What Are The Cons? The portion of the cons in the list of the reverse mortgages pros and cons is much bigger than what the pros have. The main benefit is, that a senior can turn a part of the home equity into disposable cash money and thus to improve his financial situation. There will not be any monthly back payments. In case that a senior has usual mortgage left, he must pay it away with the reverse loan. This increases the monthly sum of the disposable cash significantly. 3. What Is The Job Of The Counselor? Unfortunately also in the senior reverse mortgage market there are lots of scams and lenders, who have tried to sell too big agreements to seniors. The target of the federal counselor is, that only he can tell a senior, whether this product fits to his needs or not and to recommend reliable lenders. He can also tell about the alternatives. The counselor meeting is compulsory according to the law. 4. Is The Senior Reverse Mortgage A Short Or Long Term Solution? This is as long term product as the usual mortgage. If we think, that a senior is of age 62, when he will take the loan and if he leaves until 80, the product running time is 18 years. During that time many things can change, for instance the interest rates. So the time frame is one of the important things to ponder. 5. Are Counselors Objective? The counselors are federal counselors, they are not in the payroll of any lender. This means that they can honestly help seniors, because they are not selling any product. They can tell to a senior, that the reverse product is not good for your needs and to recommend something else, if needed. Juhani Tontti, B.Sc., Marketing. If you are about to take the senior reverse mortgage loan, you have first to learn how reverse mortgages work, because they are long term investments. Visit: http://www.reversemortgageearnings.com Distributed by http://www.ContentCrooner.com ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
