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The Pros and Cons of Reverse Mortgages

The Pros and Cons of Reverse Mortgages; "A reverse mortgage converts home equity into cash with different ways, monthly payments, line of credit or cash payouts a borrower can also do a combination of services. The amount you can borrow varies according to your age, and value of the home, current interest rates and loan fees in general."

Reverse mortgages hit the scene in the 1960s. Although met generally hesitant, the elderly public has embrace them, with their popularity continuing to climb. A report from The National Reverse Mortgage Lenders Association recently stated the number of federally insured Home Equity Conversion Mortgages by HUD raised a whopping 77 percent the previous year. Sending the federal fiscal year from 43,131 to an all-time annual high of 76,351. read more

Today's Mortgage Market

With today’s mortgage market continuing to spiral downhill, it is abundantly clear that the value of home purchase just 24months ago are also continuing to fall. A home purchased in 2005, valued at $300,000 with a 30 year fixed rate mortgage, only have an equity value of $189,000 in essence the homeowner is now carry a mortgage that is of greater value then the actual home value. Leaving them in what is referred to as upside down equity.