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Reverse Mortgage for SeniorsA reverse mortgage for seniors enables homeowners to get a loan against their home equity for tax-free income when they need it most. The loan does not have to be repaid until the homeowner either dies or leaves the home permanently. At that time the loan is due with interest accrued during the loan period. Generally, the sale of the home is enough to cover the loan plus interest with something left over. Safeguards include the fact that you will never owe more on your home than it is worth. However, there are more advantages to a reverse mortgage that have made it a popular choice among Americans and legal immigrants over the age of 62. One of the biggest advantages of a reverse mortgage for seniors is that qualifying seniors can make use of the money tied up in their home when they need it most—during retirement. Loans for the elderly are more difficult to get in the present economy than they were just a few years ago when retired seniors with little to no money owed on their homes, often tapped into the equity there to supplement their social security income. Today, it is more difficult for seniors to get home equity loans, making a reverse mortgage a great option for seniors desiring to supplement their retirement income with the cash accumulated in their homes. You can use the money any way you wish. Other advantages of a reverse mortgage include the ability to defer repayment of the loan until death. Heirs often sell the home and the proceeds are enough to pay off the loan with interest and something left over. Another big advantage of a reverse mortgage for a senior is that the amount of the loan due can never be more than the value of the home, according to the Federal Trade Commission (FTC). The lender does not own your home; he is simply willing to wait for his money until the borrower is no longer living in the home. Other advantages of a reverse mortgage include flexible ways of receiving the money, Social Security and Medicare benefits are not affected (although Medicaid could be), the loan proceeds are tax free, the homeowner retains title to the home, and after the home is sold, any remaining equity goes back into the estate. |
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 Reverse Mortgage Help: • Reverse Mortgage Pros and Cons • Reverse Mortgages - How They Work • Reverse Mortgage for Seniors |
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