Reverse Loans in the Time of Covid-19
American seniors are looking for sources to provide them with more money because some of them have experienced serious losses in their investments during the pandemic when it exploded in March. The Stock Market went off a cliff and the financial markets have been seeing significant losses in liquidity and continue to be volatile.
Many of us experienced losing money and investments during the Recession, homes were foreclosed on, and it has taken a very long time to recover or regain some of those losses from that terrible time. But for many individuals they have as of yet, to get back to where their investments were when the economy crashed.
Now it’s 12 years later, everyone is just that much older and honestly, seniors don’t have enough lifetime to wait it out until the markets improve. What are some options for money?
Some seniors are attempting to apply for a traditional HELOC at their Bank, only to find out that many Banks are no longer offering them. And it’s important to know they can “freeze” a HELOC from any future withdrawals if they get anxious about the stability of the financial markets.
Although the fees associated with obtaining a HELOC or less than a reverse loan, they don’t provide as much money and the borrower still has to make mortgage payments, whereas a reverse loan does not require payments.
And for these reasons, more seniors are motivated to investigate the possibility of using a reverse loan as a “safety net” of funds and at the same time, eliminate liquidating their investments during a severe and “down” market.
Reverse mortgages offer several choices to receive money for the borrower. The FHA HECM and Jumbo reverse loans up to 6 MM.
Learn how using reverse loans may help and don’t hesitate to find out what they may offer you.