Many seniors want to enjoy their golden years, but they can't find a way to increase their monthly income or decrease their monthly expenses enough to retire at an age that will allow them to do so. Getting a reverse mortgage is one way to get around this problem. With a reverse mortgage, homeowners over the age of 62 can turn the value of their homes into tax-free income while they still live in the home. With a reverse mortgage, seniors don't have to make payments every month like they do with a traditional mortgage. Instead, they get paid the current value of their property.
But how do you know if you should get a reverse mortgage?
Reverse mortgages are a great option for a lot of people, but they need careful planning and thought. Since the pay out terms can be set up in different ways, such as with different pay out terms, lines of credit, or both, it is important to think about how much you can get for your home in terms of your long-term financial needs. There are no rules about how the money can be used, so you can do anything you want with the money from a reverse mortgage, like fix up your house.
Reverse mortgages won't change your regular Social Security or Medicare benefits, but they can change your eligibility for Medicaid in some cases. If you want to get a reverse mortgage, you have to go through counselling, and a counsellor from a government-sponsored lending agency can answer all your questions about how your benefits might change.
Reverse mortgages can be a great way to add to your income after you retire, as long as you understand how the right way to structure your payments can help your long-term finances. The best way to decide if a reverse mortgage is right for you is to look at all the available information so you can make an educated choice. Those who have paid off most or all of their home before retiring don't have to worry about not having enough cash.
