Reverse Mortgage Alternatives

Please reveiew the list of Reverse Mortgage Alternatives that follows:

Equity Line of Credit (HELOC)
If you have equity in your house you may be able to qualify for an equity line of credit loan. Income, debt, and credit are important factors in getting this type of reverse mortgage alternative loan.

You may be able to have a non borrowing relative provide help in income qualifying. In other words they don't have to live with you but must be on the loan. This is basically a loan with a co-signer.

The benefit of an equity line of credit is the lower cost and full amortization of the loan. No negative amortization like a reverse mortgage. The drawback to this type of loan is monthly payments are required.

This may be the right type of loan for you if all you need is money for home repairs. For example: a new roof and you are able to make the monthly payments.

Consumer Credit Counseling
If you have debt piling up much of it may be non-secured. If this is the case a Consumer credit counseling company may be able to negotiate a favorable reduction in monthly payments on your behalf.

These companies usually charge a fee for their services and not all companies will negotiate the best deal on your behalf. Do your homework when selecting these types of companies. Try the better business bureau (BBB) and check their rating if they are a member. If they are a member and you have problems you will be able to make a formal complaint with the BBB against them.

Life Insurance Cash Value
Depending on your circumstance cashing out your life insurance policy might be an alternative to getting a reverse mortgage. PLEASE check with a trusted financial planner, accountant or advisor to understand all the ramifications and possible tax consequences.

Selling your House and Downsizing
Capital Gains may be an issue if you sell your house and downsize as reverse mortgage alternative. In addition there may be state specific tax ramifications for example: California's Prop 13 provision - lower property taxes on the existing property/higher taxes on a new one. PLEASE check with a trusted financial planner, accountant or advisor to understand all the ramifications and possible tax consequences.

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To contact a reverse mortgage expert to learn more about alternatives please follow this link Contact an Expert on Reverse Mortgage Alternatives (Click Here)

If you would like to learn more about reverse mortgages step-by-step please follow this link that will take you to to "Step-1 Qualifying" Learn About Reverse Mortgages Step-by-Step (Click Here)