Please investing for senior citizens this error screen to sharedip-1071805137. Seniors are often faced with finance troubles, as living on their fixed income doesn’t always cover all the expenses that seniors face. Seniors are also sometimes faced with difficulties keeping up on their mortgage payments, now that they are in retirement with a fixed income. This article will explain and detail the proper loans to receive based on their financial situation.
While reading about the various loans, keep your personal situation in mind, and find one that best fits your needs. Contact your financial institution to inquire about the loans you are interested in. Now that they are living of a fixed income in retirement, they are having trouble covering their mortgage payments, and if they do cover the payments, they will be short on funds for other living expenses. This is where a reverse mortgage comes in hand for senior homeowners. A reverse mortgage allows the homeowner to borrow money against the value of their home. This comes in the form of a lump sum, or in monthly payments. As a result the senior does not repay the mortgage until they pass away or move out.
After this the home will go to the lender as the form of repayment, or the heirs of the senior citizen can pay off the loan and own the house. Basically what this means for this homeowner is, it allows the seniors to collect money from the lender in the form of a lump sum or monthly payments, hence the word reverse, as you are now receiving the payments, instead of making the payments. Keep in mind, interest rates can be higher on a reverse mortgage then a traditional mortgage. Single Purpose Reverse Mortgage This tool allows seniors to retrieve some of the equity from their homes, which has to be approved by a lender. These mortgages are available through some state and local government agencies, however they are not available in all states. This type of mortgage is ideal if you have a large expense and have no other ways to pay for it, therefore a portion of the equity from the home is used. This is the same as a normal reverse mortgage except for the fact that it is insured by the FHA.
This could result in lower interest rates, however it could be harder to qualify for a FHA reverse mortgage over a non FHA insured reverse mortgage. These mortgages do not need to follow all the regulations of an FHA reverse mortgage, however most still follow many of the same practices as FHA reversed mortgages. This loan modification program is run by the U. So you can really see the value of this program based on that stat. As a result of these stats, this is clearly a great program for seniors having difficulties with payments, especially if a reverse mortgage is not an option.
If you are interested in more information visit makinghomeaffordable. This is ideal for seniors who need assistance if your home is underwater, which means the mortgage amount exceeds the property value of the home. The object of this program is to allow you to save on your mortgage payments by refinancing your home. To find out more about eligibility and to get started, click here. Loan Modification If your mortgage is underwater, meaning you owe more then your house is worth, you can modify your mortgage through something called a Principal Reduction Alternative. What this does is, it reduces your payments to a more affordable percentage of your income, and also forgives part of what you owe over time.