Reverse Mortgage 

Many retired homeowners are finding it hard financially to make ends meet.  They had planned for retirement, but they are finding that their planning was not enough to meet all their needs.  Perhaps they have encountered unexpected medical expenses.  Perhaps they want to travel and cannot afford to do it. Perhaps the home needs some fixing up or they simply want to be able to make some investments. 

If you are worried about money, own your home or have substantial equity in the home, and you are 62 years of age or older, you may qualify for a reverse mortgage.  There are no income limits to qualify for a reverse mortgage.  Talk with your lender.  In fact, do your research and check out two or three different lenders before deciding which one to use for your reverse mortgage. 

Your primary residence must be the home used for the reverse mortgage.  The amount of money you receive for your reverse mortgage depends on your age, the value of your home, current interest rates, and the current market trends.  The older you are the more cash is available to you. 

Homeowners contemplating a reverse mortgage may have to attend an educational session to learn about the pros and cons of a reverse mortgage as well as other any other loans that may be available to you.  Learning all you can about a reverser mortgage will help you make an informed decision.  You should talk with your family members before you commit to the reverse mortgage. 

You may use the money from your reverse mortgage for anything you want or need. 

Reverse mortgages are not available only on single family type homes.  Multiple unit dwellings can qualify.  Manufactured homes and approved condos that meet FHA and HUD requirements can also qualify. 

With a reverse mortgage you are converting the equity in your home into cash.  You will not have to make payments to the mortgage company or bank.  Instead, they will make the payments to you.  You can take your money in a lump sum.   You can set up your reverse mortgage as a line of credit you can use whenever your need or want to draw from it.  You can receive monthly payments from your reverse mortgage.  You can do a combination where you receive monthly payments and have money reserved as a line of credit. 

Unlike a traditional mortgage loan, the reverse mortgage does not need to be repaid until you, the homeowner, no longer live in the home.  You must keep paying the taxes and insurance on the home and you are responsible for the normal upkeep of the home. 

The reverse mortgage will come with fees such as origination fees and closing costs.  Interest will accrue on your loan.  When you sell your home, or you are no longer living in your home, the loan and the accrued interest will need to be repaid.  After payment of the loan and accrued interest, if there is any equity remaining from the home it will go to you or your heirs in the case of your death.  

If you want to make your financial life easier and not have to worry about how you can afford being retired, then a reverse mortgage may be right for you.  Your reverse mortgage can provide money so that, together with you other income, you have enough to live on year after year without struggling.