Taking Out a Reverse Mortgage
For senior citizen entrepreneurs that own a home, a reverse mortgage could provide the financing you need during difficult times. But beware.
In difficult economic times, home-owning entrepreneurs of all ages may be able to place first or second mortgages on their homes, refinance existing mortgages to take advantage of equity, or establish lines of credit secured by their residences.
The availability of these options to individual borrowers depends on many factors, such as credit history, equity, interest rates and lending standards, which are now tightening. One consequence of using these financing vehicles to access capital is that you’ll be taking on additional debt with a new or larger monthly payment.
However, qualifying senior citizen entrepreneurs that own a home have an alternative loan option: the reverse mortgage, which is the opposite of a standard or conventional mortgage. Generally, the purpose of a reverse mortgage is to help homeowners over the age of 62 continue living in their homes while supplementing their monthly incomes. The best candidates for reverse mortgages are homeowners who have large equities in their homes, but who are cash-poor.
Post from: Reverse Mortgage Loan Blog
