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A Reverse Mortgage is.. Definitely not for everyone!

It may surprise you to hear a reverse mortgage lender saying this but it is true. The loan is intended to be the last loan you will ever need and not a short term financial instrument.

Borrowers looking for a short term loan may be better suited for a different type of financing as reverse mortgages require mortgage insurance, origination fees and third-party fees that all must be paid up-front making the loan impractical for a short term solution.

However, for those borrowers who want to remain in their homes and need extra income or cash to do so, a reverse mortgage may be exactly what you need. There are a few questions to ask yourself:

* Do you find yourself short of funds before the end of every month?

* Have your retirement plans been put on hold or delayed due to the economy?

* Are medical expenses/needs demanding too much of your disposable cash?

* Would you like to be able to help family members with college or other expenses?

* Do you need additional cash or income to be able to enjoy your retirement for travel, leisure activities, or to just be more comfortable?

* Do you have a current mortgage payment which if were gone, would make a huge difference in your life and lifestyle?

If you are 62 and over, want to stay in your home and answered yes to any of these questions or if you find that you need additional cash for your own unique reasons, then a Reverse Mortgage may be the right answer for you and your family.

A Reverse Mortgage is designed to be the last loan you may ever need. It works opposite a traditional mortgage. Rather than making monthly payments to pay off a loan as is the case with a traditional or forward mortgage, with a reverse mortgage the equity in your home pays you. Since there are no monthly payments, there is no income or credit qualification required.

The loan is safe and is Government-Insured by the Federal Housing Administration (FHA), a division of the Department of Housing and Urban Development (HUD). This loan was signed into law as a Government-Insured product by Ronald Reagan in 1988 and since its inception, it has helped hundreds of thousands of senior homeowners safely access the equity in their homes to help them better enjoy their retirement years.

Reverse mortgages did not originate in 1988, there were previous versions but they were flawed and contained provisions which could hurt homeowners. Many of those misconceptions about the current government product linger still today. But you can rest assured that the Home Equity Conversion Mortgage (HECM or Heck-um) insured by FHA is an excellent opportunity for seniors to access the equity in their homes without the pitfalls of the previous programs.

Borrowers have a choice of how they can receive their money. After the current liens on the property are paid off, borrowers can choose a number of different ways to get their cash.

You can choose to receive the funds all at once, in monthly installments, as a line of credit you can access as you choose, or a combination of any or all of the above. Regardless of how you choose to receive your money, you never have to make a monthly payment for as long as you live in your home.

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