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MBA Urges Regulators To Avoid Invoking Suitability Standards
The Mortgage Bankers Association (MBA) recently made a preemptive strike against what it obviously perceives as the next threat against the mortgage industry - "suitability standards." Read more...

 

What A Reverse Home Mortgage Means

Many of you have spent more than half of your adult life paying off a home mortgage. After all it is part of the "Great American Dream" to own one's own home, free and clear. As the years have passed, and the value of your residence has increased, it may have just become your main savings account and only asset. In other words, over the years you have been building equity in your residence. However, because of life's circumstances, like excessive debt, illness, loss of income or even death of a spouse, you are in need of tapping into this reserve of cash.

In the United States only those of you, which are sixty-two years of age or older, may qualify for a reverse home mortgage loan. The reverse home mortgage loan simply enables you, the homeowner, to tap into the home equity of your personal home and not have to worry about having to sell the home or take a second mortgage loan, which would only increase your monthly debt. The money realized from a reverse home mortgage can be taken in one total payment, monthly payouts or a combination of the two.

You may be asking yourself what are the advantages of a reverse home mortgage loan. Perhaps the greatest advantage of a reverse home mortgage, as a senior citizen is the fact this is considered, by the Internal Revenue Service, as non-taxable income. Another great advantage is that a reverse home mortgage won't count against the income you can earn beyond the Social Security cap on earned income.

Even though a reverse home mortgage sounds like a great idea, it may not be the right choice for you. There are many other factors, beside those mentioned above, which should be taken into consideration before you determine if a turnaround loan will be the right thing for you.

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