Advantages of a Reverse Mortgage

A reverse mortgage is a loan that enables senior homeowners, age 62 and older, to convert part of their home equity into tax-free* income without having to sell their home, give up title to it, or make monthly mortgage payments. The loan only becomes due when the last borrower (s) permanently leaves the home. This offers the senior to enjoy all the benefits of living in his or her home with out the worries of making mortgage payments.

The main advantages of a reverse mortgage :
• Remain independent. A reverse mortgage allows you to remain in your home and retain home ownership.
• Stay in your home. It allows you to remain in your home and retain home ownership.
• No monthly mortgage payments. You need not pay back the reverse mortgage loan nor make any monthly mortgage payments until you permanently move out of the home.
• Tax-free money. Because the money you receive from a reverse mortgage is not considered income, it is tax free* and will not affect your Social Security or Medicare benefits.
• Freedom and flexibility. The money you get from a reverse mortgage is yours to use in any way you choose.

The benefit of this type of loan is that it frees up a senior’s income for them to use any way they want from daily living expenses, home improvements, and healthcare expenses, paying off existing debts, or simply enhancing your retirement years. For many people, the money provides a "financial security blanket," in case unexpected expenses arise.

One of the biggest falsehoods of a reverse mortgage is that the Lender actually owns your home that is 100% false. A reverse mortgage is just like any other loan you own the property and you have a pay off you will have to make to the lender at sometime in the future. The only difference is you don’t have to make a monthly mortgage payment and this will free up money for you to use in any way you would like.

Another Falsehood with reverse mortgage
Is that it is possible for my loan balance to become greater than the value of my home? You can never owe more than what your home is worth. What’s more, since the reverse mortgage is what is known as a "non-recourse" loan, the lender cannot seek repayment from your income, your other assets, or your estate. In other words, the house stands for the debt.

A reverse mortgage may be the best mortgage solution for a retired person over the age of 65 reverse mortgages will give you peace of mind and security