Reverse Mortgage Evolving

Robert Simmons, 67-year-old retired personal chef, wanted to pay the debt and travel to China, which sponsors the tuition of several children.

He recently had a reverse mortgage on his house for nearly 20 years in tony Southampton, NY, using the proceeds to pay the mortgage remaining $ 80.000, near a line of credit for home repairs and buy a new car altogether.

"I was not struggling to pay the bills, but I needed the extra push just to give me a good cushion so I could make a good trip and have a nice time in my years of decline. Before leaving the whole, I see something, "he said.

Simmons is among a growing number of people aged 62 years or more out reverse mortgages that allow them to take advantage of home equity for extra cash.

The typical borrower is no longer the elderly widow's house rich and cash poor, determined to stay at home and earn a living. As reverse mortgages become more popular, borrowers are younger and are often couples using the money to improve lifestyles for longer retirements.

Loans can be taken as lump sums, monthly payments, lines of credit or a combination. Homeowners hold title to your home. The mortgages are not paid until the borrowers move or die and repayment can not exceed the value of the house.

"Everything that was paid and I am debt free, except for credit cards," said Simmons. "It just gives an ease of mind that you do not pay for anything."

The demand for reverse mortgages has doubled every year, but the pace has slowed in the last year due to a shortage of mentors for compulsory education providers need before loan approval. This month, the U.S. Department of Housing and Urban Development to expand the network of advice to meet the high volume of refinancing applications.

A House subcommittee will also meet to discuss a bill eliminating a limit on the number of reverse mortgages insured by the Federal Housing Administration. The FHA insures 90 percent of all U.S. reverse loans.