Seniors today often live with a great deal of financial uncertainty. The retirement they imagined and planned on may be different than what they once thought. Incomes are flat or declining, living and medical expenses are higher than ever before and those who have a mortgage feel that they'll never pay it off at least within their lifetime. The future might look bleak, but the government has helped with a program for senior homeowners called the reverse mortgage. Even those who have heard of them may be unsure about how they work, who can qualify and how to get one.
A reverse mortgage is a government funded program that allows senior homeowners to convert a portion of their home equity into usable money they can use now or in the future. The funds are not taxable and don't interfere with Social Security or Medicare benefits. The senior always retains title to the home as well as any future appreciation in value. The program is never due unless both seniors pass away, sell or move out permanently. The senior can't be forced to move and unlike a traditional mortgage, no monthly payments are required on what is owed. In other words the senior can live to be as old as they want, having full access of their current home, never having to pay back the money that is owed as long as they are living in the home.
Many seniors are finding that a reverse mortgage is a financial tool and a good way to obtain needed funds if they have their home paid off. However, it's also a way to pay off an existing mortgage. The program has the power to not only provide money for monthly living expenses, home improvements, vacations and healthcare, but it can, in fact, save hundreds and even thousands of dollars a month by removing a senior's monthly mortgage payment. In most cases that alone could dramatically change a senior's financial future.
To qualify, a senior must be a homeowner who is at least 62 years of age. The amount they can qualify depends on the value of the home, the amount of equity in the home and current age.
Since the year 2000, reverse mortgages have grown and have been a way to relieve a mortgage payment or have a steady source of monthly income. As incomes become fixed and retirement funds become increasingly hard to find, seniors are discovering a reverse mortgage may be the perfect solution.
A reverse mortgage is a government funded program that allows senior homeowners to convert a portion of their home equity into usable money they can use now or in the future. The funds are not taxable and don't interfere with Social Security or Medicare benefits. The senior always retains title to the home as well as any future appreciation in value. The program is never due unless both seniors pass away, sell or move out permanently. The senior can't be forced to move and unlike a traditional mortgage, no monthly payments are required on what is owed. In other words the senior can live to be as old as they want, having full access of their current home, never having to pay back the money that is owed as long as they are living in the home.
Many seniors are finding that a reverse mortgage is a financial tool and a good way to obtain needed funds if they have their home paid off. However, it's also a way to pay off an existing mortgage. The program has the power to not only provide money for monthly living expenses, home improvements, vacations and healthcare, but it can, in fact, save hundreds and even thousands of dollars a month by removing a senior's monthly mortgage payment. In most cases that alone could dramatically change a senior's financial future.
To qualify, a senior must be a homeowner who is at least 62 years of age. The amount they can qualify depends on the value of the home, the amount of equity in the home and current age.
Since the year 2000, reverse mortgages have grown and have been a way to relieve a mortgage payment or have a steady source of monthly income. As incomes become fixed and retirement funds become increasingly hard to find, seniors are discovering a reverse mortgage may be the perfect solution.
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