Reverse Mortgages, sometimes referred to as a Lifetime Mortgage, can give financial support to senior citizens after they have retired. But finding all about reverse mortgages is important before you decided if they are for you. These mortgages are made available to individuals of 62 or older to free up some of the equity in their homes to use as they desire. This can be done either through a lump sum payment or through monthly payments. There is also a third option and that is to reserve the money as a home equity line of credit.
Most any homeowner that is 62 can qualify for a reverse mortgage. A job is not required because the recipient will not be making payments. In the same respect, creditworthiness is not necessary because the equity is already built up in the home and is not being repaid until the home is sold or the owner is deceased.
Reverse mortgages are increasing in popularity as retirees are looking for options to supplement their retirement income. A reverse mortgage gets its name from the action of taking or reversing the equity in the home rather than building the equity.
Here are a few of the benefits to having a reverse mortgage:
*Reverse mortgages give additional financial security to seniors after they have retired. The money is also available for unexpected expenses, medical expenses, home improvements, a vacation or anything else that may be necessary or desired.
*There are no payments required while you are living in the home.
*There are no income taxes paid on the proceeds of a reverse mortgage. A reverse mortgage will not interfere with Social Security or Medicare.
*You will retain ownership of your home as well as maintaining your independence.
* Reverse mortgages are insured by the FHA (Federal Housing Authority) or backed by Fannie Mae.
*Most importantly, reverse mortgages offer a monthly income after retirement offering financial independents and peace of mind.
There are many reasons to consider a reverse mortgage, but ultimately you have to decide if this is what is in your best financial interests. Independent credit counseling is required before a reverse mortgage is granted to ensure that the applicants fully understand everything that is involved in a reverse mortgage. Finding all about a reverse mortgage can be done by contacting a reputable lender. They will answer all your questions and explain alternatives that may also work for you. A reverse mortgage can help you unlock the equity that you have in your and help you find financial security.