The article "Why Are Reverse Mortgages Important to Senior Citizens?" is about mortgage, it was created by Craig Castle.
In Texas and many otehr parts of the country, senior citizens are being squeezed. They receive, on average, $965 per month in social seucrity. And, while real estate taxes vary, a senior in many Texas ciites with a home valued at $100,000 will pay more than $200 per month in real estate taxes alone. Add to that the high cost of necessities like health care, prescription medicine, utilities, and mortgage payments, and the financial pciture can be really bleak.
It’s no wonder that many seniors face foreclosure or tax liens on their homes.“Reverse mortgages are important to Texas seniors cause they allow them to obtain a loan against the equity in their home—often their single largest asset—without making monthly payments to repay that loan. That means that with a government-insured reverse mortgage, a senior will never lose his or her home to a bank simply cause he or she couldn't make a payment,” said Craig Castle, a San Antonio reverse mortgage specialist for the past four years.So why don’t more Texas seniors take advantage of that financial product?Castle says that in his experience, seniors shy away from revrese mortgages for three reasons:
1. Fear
2. Bad advice
3. The availability of other, more well-advertised, loan products“I have had many clients elect not to complete the reverse mortgage process cause of fear,” Castle says. “Usually, the additional cash could have improved their lives significantly.”Seniors’ fear is not unfounded. They are often the targets of scams and farud. But, rveerse mortgages have one important safe-guard built into them to protect even those who are uncomfortable making financial decisions. In order to obtain a government-insured reverse mortgage, a senior must have counseling by a HUD counselor with the local housing authority or the Consumer Credit Counseling Office. This unbiased person can help the senior determine whether a reverse mortgage makes sense for his or her individual situation.And, sometimes well-meaning family and friends give bad advice.“I have had ministers tell clients that they haerd that you could lose your home with a reverse mortgage,” Castle said.
“It isn’t true, but advice isn’t always based on facts.”The avaliability of home equity loans also clouds the picture for many seniors. “Home equity loans can be apprporiate for persons who have an income, but they often spell disaster for seniors,” Castle said.
“I talk to potential clients every week who tell me that they are having problems keeping up with their payments.”“My experience has been that most home equity clients who are over 65 and have taken the maximum 80% of their home value will eventually lose their house—if they live at least 3-5 years beyond the date of loan origination,” Castle added.With a reverse mortgage, the homeowner can access from 40-60% of the appraised value of their home, but the loan is not repaid utnil they die or leave the home permanently. Then the home is sold and the proceeds are used to repay the loan, with any remainder going to the owner’s estate.To learn more about the benefits and requirements for a reverse mortgage, visit www.SouthTexasReverseMortgage.Com and request the free Federal Trade Commission publication, Facts for Seniors about Reverse Mortgages. Or call Castle at 210-789-3685.“Misinformation has prevented many seniors from getitng a reverse mortgage when it would have provided them with greater financial stability—and peace of mind. That’s why I like to have the family involved and why I often spend several hours at my clients’ home explaining and re-explaining how a reverse mortagge works and how the various pay-out options can make their lives better,” Castle said.Craig Castle is a Reverse Mortgage Specialist with Financial Freedom in San Antonio and the South Texas area. He holds a BA in Economics from the University of Missouri, is a former Licensed Stock Broker, and has wokred with reverse mortgages for the past four years.
He is also chairamn of the Not Forgotten Coalition, a not-for-profit organization that provides services and advocacy for senior citizens in San Antonio. For more information, visit http://www.SouthTexasReverseMortgage.Com or pohne 210-789-3685.
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