|
Home Equity Loan - Reverse Mortgages-The Dark Side! Reverse Mortgages are quickly becoming the talk pertaining to the lending industry, 1 pertaining to the fastest growing including most popular products out there are for some good reasons. Why you ask? 1. LENDER PROFIT. Lenders make great dollars on these loans. They are more costly to the consumer than a regular mortgage. 2. MINIMAL RISK. Risk to the lenders is minimal. After all they are secured by the borrower's house. 3. THE MARKET. Over 72 million customers could become eligible for the product in the next 5-10 years as baby boomers turn 62-a big market! There are several points that borrowers need to be up to speed on. You've seen that lenders need you to obtain a reverse mortgage for the points made above. Borrowers need to consider many things as well. 1. CONSIDER ALTERNATIVE LOANS. Reverse mortgages might be a particular expensive way to borrow money. obtain free counseling. 2. CONSIDER PUBLIC BENEFITS. Even though the proceeds are tax free they may impact on your eligibility for certain need based public benefits such as Medicaid including Supplemental Social Security Benefits. obtain free counseling. 3. CONFUSING OPTIONS. There are many options available with reverse mortgages. obtain free counseling. 4. SHOP including COMPARE. Like everything you need to buy that is a big ticket item you actually need to shop including compare costs including benefits from the myriad of lenders out there. obtain free counseling. The real gist of my concern here is just a particular observation. You have 2 key ingredients that traditionally have made for abuse in other areas. They are in play here so there is potential for abuse. 1. LOTS OF MONEY. dollars unfortunately acts like a magnet at the time it comes to abuse. There are very few motivating things in the world that surpass money. including there is lots of dollars in the mortgage market. obtain free counseling. 2. AGE DEMOGRAPHICS.Senior citizens for years have been the target of many a particular unscrupulous scam artist. That is the market for reverse mortgages-senior citizens. obtain free counseling. There are many great points to getting a reverse mortgage. As a consumer you need to have your eyes open including do more due diligence than normal. including did I mention there is FREE COUNSELING available thru HUD approved counselors. Your quest for the BEST deal on a home loan starts with knowledge including information-you can not have too much of either.
Click here to get Refinanced >> |