Reverse mortgages: Easing financial problems for seniors

The US Department of Housing and Urban Development (HUD) is offering a new reverse mortgage program that offers lower maximum loan amounts and lower up-front mortgage costs. HECM Saver mortgages provide tax-free funds for homeowners aged 62 and above. Reverse mortgages allow homeowners to draw against the equity in their homes after paying off any existing home loans. Reverse mortgages do not become due and payable until the borrowers sell or otherwise vacate their homes. As homeowners continue to struggle with tough economic conditions, some have discovered that using a reverse mortgage as a refinance mortgage can help with eliminating more than monthly mortgage payments.

Reverse mortgages: Paying off debt and curing mortgage defaults

For qualified homeowners wishing to pay off debt or make up missed mortgage payments, refinancing to a reverse mortgage can satisfy your existing mortgage debt while providing cash for paying off bills. Reverse mortgages don't require monthly payments. You can take your loan proceeds in several ways:

• Lump sum payment: The net proceeds of your reverse mortgage (after paying off your existing mortgage and deducting closing costs) is disbursed at closing.
• Monthly payments: You can elect to receive monthly payments for a specific term or until you vacate your home.
• Line of credit: Use available credit as you like.
• Combination: customize your disbursement.

Using a mortgage payoff calculator can help with estimating how much cash you'll receive from a reverse mortgage after paying off your existing home loan(s).

Online mortgage calculator tools: Finding your best mortgage options

Mortgage calculators including the prequalification calculator and refinancing calculator can help determine if you can qualify for a new mortgage, and can also help with comparing your current mortgage to potential refinance mortgage options. Whether you're in the market for a mortgage refinance, a reverse mortgage or other mortgage options, discussing your plans with a financial advisor and requesting free mortgage quotes can help you identify the right product.