Parents In Trouble With Funds
In today’s difficult economy our seniors often have difficulties in relation to establishing new credit. Bruce E Baldinger believes that seniors are often having trouble with financial problems.
The problem is Mom’s and Pop’s have a fixed retirement source. Older people are not be employed usually. However they can have increasing cash flow needs. What is the solution? If they have a piece of property that has excess equity. If this is the situation and they want to keep the house a reverse mortgage could help them thinks tells Bruce Baldinger Sr.
How a Reverse Mortgage is Helpful
Reverse mortgages depend on certain criteria being present. The owners need to be retirement age. Second there must be extra value in their house. The general health of the home owners must known. In addition, is an appraisal of the house. This is needed to find the approximate amount that could be borrowed.
The Loan Type
Generally the amount of debt that is available is 23% to 45% of the excess equity in the house. The loan type is credit line or lump sum. This allows for flexibility for the people.
When the Loan Comes Due
Usually when there are two owners, the loan is setup as a last to die scenario. This usually works well. It can happen is the debt can get too big. This will need to be paid down unless a no negative equity clause was added. No payments are required usually during the life of the people. thinks Bruce E Baldinger
The Loan Benefits
No mortgage payments are ever needed. This allows the owners to use their cash more productively. In addition the loan can pay down of the current mortgage. Some retirees are able to create do things they have always wanted.
A counselor is required
Reverse Mortgage loans need explanation. There are many areas to understand. The loan companies require a sit down meeting with the loan originator. This is to inform the customer for the agreement.
Read this interesting blog by author Bruce E Baldinger