Seniors all across America have looked to Reverse Mortgage as a means to raise finances to help them retire more comfortably. The term Reverse Mortgage though new to some, is not a new term. Seniors have been taking advantage of this mortgage product for some time now. This can be a very powerful financial tool for seniors to utilize in their retirement years.
Due to the massive amount of confusion and misconceptions surrounding this financial product, it behooves seniors to seek out professional advice when considering a reverse mortgage. After reading this article you should able to determined if a reverse mortgage is an option for you or not.
What is a reverse mortgage for seniors?
A reverse mortgage allows seniors 62 years and older to turn the equity in their home into cash. They can chose to receive that cash in a lump sum, on a monthly basis, or in a combination of both. Either way, this is a powerful way of tapping into their equity without taking out a line of credit which demands a monthly payment, and can put their home in jeopardy of foreclosure should for some reason they default on their loan.
The attractive benefit for many seniors is that there are no monthly payments to make, unlike a normal mortgage. The money that is drawn down is tax-free.
While many baby boomers are coming up to retirement, they are realizing that the amount of income that they are going to receive during their retirement is not going to be sufficient to live on. This has led to there being a big increase in interest in reverse mortgages.
The money received can be used for any purpose.
This includes, but is not limited to:
supplementing existing retirement provisions.
paying for medical care or carrying out modifications to the house such as installing a ramp or downstairs shower.
You could even use the money to go on a vacation of a lifetime or buy a new car.
A reverse mortgage is very attractive source of extra income to many seniors. The income from a reverse mortgage does not in any way affect the income that senior may receive from other sources.
Like with any other major decision, seniors are strongly encouraged to seek out professional help when considering a reverse mortgage.
