National Reverse Mortgage Lending

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Have you considered a reverse mortgage, but don’t know exactly what it is and how it may benefit you? There are many things to learn about reverse mortgage type of loans and you should be informed as to what they are before you go out and shop for the best one for your needs. The question is then, what exactly is national reverse mortgage lending?

This is a loan that is only available to senior citizens that are 62 years of age or older who have a home with a significant equity base. From the lenders perspective, they are willing to give you your home equity right now in a lump sum or multiple payments. You will no longer be obliged to make monthly payments towards your mortgage. The lender is willing to make this type of loan because they know that at some point in the future you will move on to an assisted living facility or pass away. At that time they will take ownership over your home and sell it to repay the loan.

Benefits Of National Reverse Mortgage Lending

Lenders make their money from this loan type in two ways. They charge a small fee at the inception of the loan, approximately around 2-5% of the total loan amount, and they also make money on any appreciation of the home over time. Therefore, if you own a $150,000 home, they will make between $3,000 and $7,500 at the onset and if the house appreciates over a 10 to 30 year period of time or longer, then they get the benefit of the appreciation when they sell the home as well.

From the borrowers perspective, this is a great way to utilize your home equity right now instead of at a later date. You can cash in today and have a large chunk of money to add to your current retirement account, which can be earning you interest to help with your living expenses. As a borrower, it benefits you more because the typical home only appreciates about 3% annually and that money could be used to earn 10% or more in a retirement account or mutual fund.

If you are in need of money to help you retire, then national reverse mortgage lending may just be your answer. Just be sure you are dealing with a reputable lending firm that you have investigated thoroughly. Unfortunately, there are con artists ready and willing to prey on the elderly.

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