East Syracuse, NY -- (SBWIRE) -- 01/31/2012 -- Over the past few years, reverse mortgages have been getting a lot of attention as a way for senior citizens to get some much-needed cash for everyday expenses or long term care.
But although the term is certainly well-known, many people are confused about what a reverse mortgage actually is, how the mortgage program works, and if it’s generally a good idea to think about getting one.
A new website is already creating quite a buzz for its complete and concise information, help and advice on anything and everything related to reverse mortgages.
Reverse Mortgages Compared features a huge selection of educational articles, all designed to take the confusion and guesswork away from the topic of reverse mortgages and help teach people how to compare the different lenders, rates and other services.
The first article, located at the top of the home page, starts out by answering a question many people have: what is a reverse mortgage?
“A reverse mortgage is a form of equity release, it allows a borrower to turn the equity that has been built up in a home into cash,” the article explained, adding that the funds can be received through a lump sum payment, an ongoing monthly payment or a combination of both.
“What separates reverse mortgages from traditional mortgages is that the loan does not need to be paid back until one of the following occurs; the owners/borrowers sell the house, the house is no longer the primary residence (this occurs when the owner do not live in the house for a period of 364 consecutive days or more usually as a result of moving into a nursing home or retirement village), or they pass away.”
The website also offers helpful pros and cons regarding getting a reverse mortgage. On the plus side, the lump sum or ongoing payments are not taxable by the IRS, and social security and Medicare benefits are not typically affected.
Some possible negatives to consider are the high start up costs—as much as $8,000 in some cases—the compound interest tends to add up very quickly, and most loans do not come with a fixed interest rate.
The website also looks at a reverse mortgage purchase, also known as HECM, which allows seniors age 62 and older to use their reverse mortgage to buy a new principal residence.
About Reverse Mortgages Compared
Reverse Mortgages Compared helps people understand the process of taking out a reverse mortgage. The website teaches them through a variety of helpful and educational articles about the pros and cons of getting a reverse mortgage, how to compare rates and lenders, and much more. The free website is user-friendly and offers tips and advice. For more information, please visit http://www.reversemortgagescompared.com