Seniors are increasingly discovering the benefits of a reverse mortgage
. Sun American
Mortgage, based in Mesa Arizona, offers expert advice on reverse mortgages and was the first lender to offer the reverse mortgage program in Arizona over 20 years ago.
According to Robert Jones of Sun American Mortgage, reverse mortgages apply the opposite
principles of a traditional forward mortgage. In a traditional mortgage, you pay down a home
loan, turning your income into home equity. A reverse mortgage turns equity into tax-free
income or immediate dollars. The money received can be used in any manner, with no
restrictions. Moreover, with a reverse mortgage, the senior is not required to make payments on any of the used money for as long as they live in their home.
"The benefits of taking out a reverse mortgage are plentiful," said Jones. "Seniors can gain the freedom to buy cars, do home repairs and travel. Many feel more secure with a larger monthly
income or a line of credit as a safety net to draw upon, without the burden of a home equity
loan, which must be repaid."
The National Reverse Mortgage Lenders Association reports an increase in reverse mortgages of more than 112 percent since 2003. Many seniors are educating themselves about this
program and by doing so are changing their lives.
Criteria are less stringent for a reverse mortgage. To qualify, a senior need only have equity in
their home and be at least 62 years of age or older. There is no income or medical
requirements.
Since reverse mortgages are regulated by the government, loan terms will be fairly
standardized. In this environment, Sun American's superior service makes all the difference.
Customers at Sun American can expect to close two to three times quicker than most, and the program is provided with no out-of-pocket costs.
Many seniors have benefited from the safe option of taking out a government backed reverse
mortgage because they don't want to struggle financially anymore. "We've witnessed great
consumer satisfaction with this type of program," said Jones. "At Sun American Mortgage, our reward is helping seniors learn how this system can provide lasting security."
