Old age brings with it many insecurities and fear for your loved ones and also about your own existence in the mad world. Since you have retired, it means that you have also left the rat race behind you, the race to earn more money, the race to increase your standards of living, the race for survival at any cost. During your active service life you may have made some profitable investments that are your security now and you may even have build a house of your own, which is your haven now. However, the uncertainties of economic fluctuations leave you wondering, will your investments be sufficient in your time of need? It is natural to be worried and concerned about your life post retirement but if you make the right decisions even now, then there is no need to worry about your finances ever. After all, being a home owner, who is retired and is sixty five years or above, you always have the reverse mortgage plan working for you.
More and more American, senior, retired citizens who are homeowners, are opting for the reverse mortgage plan as and when they face a need for financial resources. The reverse mortgage scheme owes its increasing popularity to the multiple benefits which it provides to the borrower. One of the biggest advantages of placing your home for such a mortgage is that the ownership of the house remains with the borrower, who is the original owner and hence, he can continue using the mortgaged property as his primary residence.
A borrower who has taken a reverse mortgage on his house also has the benefit of not being required to repay any part of the loan for as long as he is alive or decides to reside on the mortgaged property. All he needs to pay for are the usual charges and costs of maintaining the property like the house tax and cost for repairs and maintenance. However, if the borrower decides to sell off the mortgaged property, then the loan amount needs to be paid off by using the sale proceeds of the house, before the owner or his heir can lay their hands on any share of the sale proceeds. It also ensures that your heirs will not have to bear the burden of your mortgage loan
after you, as the house itself will pay off the mortgage through its sale, when it is required.
As a salaried individual, you have led your life independently, relying on no one for you financial existence. Now, post retirement too, you would like to lead an independent existence, without having to ask any family member or friend for financial support. So, make the best use of the house which you have so lovingly bought or built and let it secure your future for you. A reverse mortgage on your house will ensure that you not only have a roof over your head permanently but also a financial support in the form of a lump sum loan amount or monthly installments, to act as a household income, even long after you have retired.
