Reverse Mortgages – Why Seniors Must Get It

When you are getting old and already on the brink of retirement, you begin to worry much about living in a time of uncertainty. When you reach the age of 62 and become a senior citizen, you start to think of ways on how you’ll get to earn money without the help of a regular job.

For many of the elderly citizens, a reverse mortgage is the right approach for them to have a fixed income even after retirement. Instead of engaging themselves in a conventional type of loan where they will make monthly payments to cover for the money they’ve borrowed, a reverse mortgage gives an opportunity for the elders to get money against the value of their already paid up homes.

For example, let’s say your home is worth around $200,000. You decide to get a reverse mortgage out of your home’s equity. The value of your house will then be converted to cash, thus giving you an opportunity to increase your spending even if you’re already retired. Let’s say you’ve chosen to be paid $300 a month, then that will continue on as long as you stay in your home, and for as long as you live.

Also, the amount that you get is tax-free since it is considered a loan. You do not have to worry about your Social Security and medical benefits from getting affected.

When you leave your home and transfer to another place, or when the time comes that you die, then that is when the loan will be due. With a reverse mortgage, you will never owe more than what your house is worth, even if the lender has already paid you more than the value of the house. This is particularly advantageous when the value of the house has already declined and was sold to a lesser price.

There are actually no income qualifications to get a reverse mortgage. Do not fret too much if you had a bad credit history when you were still working. That definitely does not count. As long as you are 62 years of age and you own a home, then you’re easily qualified to have a reverse mortgage.

What’s also fascinating is the fact that there’s no restriction on how you will spend your money. Once you get it, you can splurge on anything that will make you happy and satisfied during old age. Travel to famous places, have regular medical check-ups, pay for your house’s maintenance – you name it. You can do whatever you want with your money.

Perhaps the most important advantage is that there’s no risk of default in a reverse mortgage. You will not lose your home in cases of non-payment. Also, if your lender defaults, you’ll still receive your payments. The Department of Housing and Urban Affairs makes sure that your reverse mortgage is federally insured.

Does that sound too good to be true? Yes it is, but if you really think about it, reverse mortgages are a practical option to consider once you enter retirement. It is the perfect opportunity to live a fruitful life while it lasts.

Other Reverse Mortgage and Your Life Articles

Dispelling The Myths About Reverse Mortgages
Reverse Mortgages: Their Advantages And Disadvantages
Reverse Mortgages: What Are Some Of The Most Common Misconceptions
Reverse Mortgages – Why Seniors Must Get It
Pros And Cons Of Reverse Mortgages
The Downside Of Reverse Mortgage
The Monetary Aspect Of Reverse Mortgage
Is Conversion Mortgage For You? – Know The Disadvantages Of Reverse Mortgages
An Overview Of Reverse Mortgage
Things You Should Know About Interest Rates In Reverse Mortgages
What Does Non-Recourse Reverse Mortgage Mean?
National Council On Aging On Reverse Mortgage
The Benefits Of Reverse Mortgage
Reverse Mortgages: The What, The Who And The How
Tips To Consider Before Getting Reverse Mortgages
Are There Any Dangers On Reverse Mortgages?
The Reverse Mortgage Process
Reverse Mortgages: The Advantages To Your Lifestyle
How Reverse Mortgage Can Affect Existing Benefits And Loans
Counselling: An Imperative Step In The Reverse Mortgage Process
Payment Options For Reverse Mortgages
How Reverse Mortgages Work
Qualifications Of A Reverse Mortgage
Things You Should Know About Reverse Mortgages
Why Reverse Mortgages Are Good Loan Options?

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