Reverse Mortgage – A Growing Trend

With rising health care and prescription drug costs, many seniors in need of extra money are taking out reverse mortgages.

According to the National Reverse Mortgage Lenders Association, the number of reverse mortgages insured by the U.S. Department of Housing and Urban Development has surged to record breaking numbers. In 1990 the number of reverse mortgages totaled 157, and just last year that number jumped to 107,558. It is forecasted that more than 200,000 seniors will be taking out a reverse mortgage in 2008.

This is mainly because more than 12.5 million seniors own their homes free and clear, totaling more than $4 trillion in home equity. A reverse mortgage will, which gives seniors an extra pay check, will help seniors put that extra money toward daily living and medical expenses.

To qualify for a reverse mortgage you simply have to have equity in your home. The more equity you have the longer you receive payments from your mortgage lenders, and the amount you can receive on a monthly basis may be greater as well.

The advantages of a reverse mortgage are that you do not have to take out a lump sum of money and pay it back to the bank on a monthly basis. Your lender will, in essence, pay you to live in your home. The money you receive from a reverse mortgage does not have to be paid back until the home is sold or you move away from the home.

For more information about reverse mortgage, pick up a free copy of the "Reverse Mortgage" e-book.