Sunday, 05 April 2020

Jacques Poujade on What Seniors Need to Know about Reverse Mortgages

Written by Posted On Monday, 30 September 2019 07:18

It’s a struggle for some people to keep up with finances once they hit retirement. Homeowners who are looking for solutions might want to consider a reverse mortgage. Jacques Poujade, a managing partner at Lend Plus, has helped a lot of people of all ages figure out which mortgage works best for them.


In order for seniors to figure out if a reverse mortgage is right for them, they need to have the right information. Poujade believes that a solid amount of information can go a long way toward people feeling comfortable with the decisions they make.


What exactly is a reverse mortgage?


A reverse mortgage is a special type of home loan for anyone who is 62 years of age or older. It allows them to take out some of their home equity and use it as cash. Not only does this provide a decent amount of cash flow, but there are no taxes that need to be paid on the money.


There are adjustable-rate and fixed-rate reverse mortgages for people to consider. A fixed-rate reverse mortgage will just be one single payment given out. The adjustable-rate has five different options, including tenure, term, modified tenure, modified term, and line of credit. Look into each payment option beforehand to see what fits best for a specific lifestyle.


What are some good reasons to use a reverse mortgage? Is there a disadvantage to getting one?


Most people opt for a reverse mortgage because it makes the most financial sense. Of course, frivolously spending the money is never a good idea, because it will just open up additional problems. Most people use a reverse mortgage to help with expenses such as debt, monthly living costs, needed home improvements, paying for college or even to buy a different home.


There are no true restrictions to a reverse mortgage, but it is important to know that there are some disadvantages to getting one as well. There is a fee that usually runs a few thousand dollars to go through with it. It also reduces the equity in a home. Finally, people should always be aware that if payments are not kept up with, the home could be lost.


Most people are fine with the disadvantages, because this loan won’t have to be repaid by heirs, and it provides just the right amount of financial help many people need.


Any other tips before fully committing to a reverse mortgage?


Along with having to be 62 years of age or older, the home must also meet all Federal Housing Administration property standards. It is also subject to being checked out before getting the reverse mortgage by a private company.


Every lender will check into a person’s credit, as well as monthly income before issuing the reverse mortgage. The older a couple is, the more likely they are to be accepted. It’s recommended to wait as long as possible to avoid running out of money early on in retirement.



For many Americans, owning a home is an essential part of the American dream.

Jacques Poujade

and

LendPlus

believe that everyone deserves the American Dream, and they are here to ensure that they can be part of achieving that dream.

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James Stevenson

Hi, My name is James and I've been involved in the property and real estate industry for 10 years now. I hope people will like to read about my thoughts and experiences in the industry and please contact me if you want to discuss my articles further!

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