With a reverse mortgage, you can get a loan against the value of your home. Just like you used to pay the bank, it now gives you money. Isn't it nice to have a change?
If you are 62 or older, you can borrow against the equity in your home (the value of your home minus the amount you still owe on your mortgage) to get tax-free money. Seniors who are having trouble making ends meet because their savings are going down and the cost of medical care is going up are looking for new ways to get money.
How much you can borrow depends on how old you are, how much your home is worth, and how much interest you pay.
You will still own and live in the house as long as the loan is still being paid. You don't have to pay back the loan until you sell the house, die, or move out for a year or more.
You can get the money as a line of credit, a monthly payment, a lump sum, or a combination of all three. A monthly payment is a guaranteed source of income for as long as you live in your home. A lump sum, on the other hand, could be used for anything you want, like buying an annuity that could pay you for the rest of your life. With a line of credit, you don't have to pay interest on money you haven't taken out yet, and your money will earn interest while it's waiting for you to use it.
You might want to think about a Reverse Mortgage if:
-You're going to stay at home.
-You want to improve your way of life and enjoy your retirement.
-You need money to pay for big things like medical bills or major home repairs.
-You need more money to live, and your home is the only valuable thing you own.
-You want the peace of mind that comes from knowing your financial needs are met.
-You either own your home outright or have a small first mortgage.
-You don't plan to leave your house to your children or grandchildren.
What are some of the benefits that Reverse Mortgages might offer?
It can help you keep your financial freedom or make your life better.
You can keep living in your home and keep the title to it.
-The money you get isn't taxed and usually isn't counted as income.
Until the loan is paid off or the house is sold, you don't have to pay anything.
-Your income has nothing to do with getting the loan, since you don't have to pay anything back until the loan is over.
-At the end of the loan, you can't owe more than the home is worth.
If you are a senior, I hope you can see why you should use this way to make money if you need it.
This is part one of a four-part series. Each week, you can find the next part right here. In Part 2, which will come out next week, we'll talk about a lot more, such as the cons of a reverse mortgage and the different kinds that are available.
