Pros and cons of reverse mortgages for seniors Reverse mortgages remain a popular lure for cash-strapped seniors, but what’s good in theory is often abysmal in execution. A reverse mortgage allows someone who is ‘house rich and cash poor’ to get a payment from their lender in exchange for the bank getting the equity in the house over time.
Zero Interest Mortgage Loans No-Interest Mortgages? No Chance – WSJ – Imagine financing a home purchase with a no-interest mortgage. You probably never would want to move again. Granted, it is doubtful that you will ever have that luxury. But if rates continue to drop, as some in the mortgage industry suggest they may, mortgage rates could inch in the direction of 0%.
Reverse mortgages are attracting a younger crowd. Originally they were designed to help cash-poor older people stay in their homes, as a loan of "last resort." But boomers ages 62 to 64 now represent 20 percent of prospective borrowers (62 is the earliest age you can apply), according to a recent survey by MetLife Mature Market Institute.
The Consumer Financial Protection Bureau, which has stepped up its oversight of deceptive reverse mortgage advertising practices, is also seeking public input to help shape rules and policies in the future. The consumer watchdog agency says it has heard from older people who say ads make reverse mortgages look easy and risk-free.
Pros and Cons of Reverse Mortgages. They are a steady stream of income that lasts for years. You can convert the equity in your home into a pile of cash without having to move out. The money is tax free. Rather than income earned, a reverse mortgage is considered a loan so the IRS can’t get its sticky fingers on it.
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A reverse mortgage can be a valuable retirement planning tool that can greatly increase retirees income streams by using their largest assets: their homes.
Pros of a Reverse Mortgage. No repayment if the home is your primary residence and you stay current on property taxes, insurance, and home repairs. Supplement your fixed income with reverse mortgage funds. Use the reverse mortgage proceeds any way you choose. No prepayment penalties if the mortgage is paid off early.
Definition home equity loan home equity installment Loans Home Equity Line Of Credit (HELOC) Vs. Home Equity Loan. – A home equity loan and home equity line of credit (HELOC) are alike in that both are secured by your home, just like the first mortgage you obtained to buy your place.Home equity loan – Wikipedia – A home equity loan is a type of loan in which the borrower uses the equity of his or her home as collateral. The loan amount is determined by the value of the property, and the value of the property is determined by an appraiser from the lending institution. 
The sessions are free or very low cost. One of the groups that educates seniors about the pros and cons of reverse mortgages is Justine Petersen, a St. Louis-based company that assists low-wealth.
Should I Refinance House When should you refinance your mortgage? The time to refinance is when you want to make a less-than-desirable mortgage better, not when you’re looking for extra money to consolidate debt or buy a new car. Refinancing makes the most sense if you fall into one of these categories: You have an Adjustable rate mortgage (arm)