June 9th, 2016 2:19 PM by Sharon Mason
Do You Understand Reverse Mortgages?
Be honest. Do you understand reverse mortgages and how they work? If not, you’re not alone. According to the Home Equity and Retirement Income Planning Survey released by The American College of Financial Services, seven out of ten seniors don’t understand reverse mortgages. According to the survey of more than 1,000 people between the ages of fifty-five and seventy-five, just thirty percent of the participants earned a passing grade on basic knowledge about reverse mortgages. Other key findings of the retirement survey include:
So what is a reverse mortgage? A reverse mortgage or home equity conversion mortgage (HECM) is a special type of home loan for homeowners sixty-two years or older that requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner's insurance. Depending on your circumstances, a reverse mortgage might be a good option to make retiring in your Arizona home possible.
The HECM is a plan that can give older Americans greater financial security according to the U.S. Department of Housing and Urban Development (HUD). Many seniors use it to supplement Social Security, meet unexpected medical expenses, make home improvements and more. Every retirement plan is different, but the Home Equity and Retirement Income Planning Survey shows an overwhelming number of people nearing or in retirement want to remain in their current home as long as possible.
Want more information about reverse mortgages in retirement? Or are you looking to buy an Arizona retirement home of your own? Please contact Sharon Mason today!
Your Arizona Retirement Expert,Sharon Mason, Associate BrokerRE/MAX Professionals623-810-9988
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