Reverse Mortgages: The Advantages to Your Lifestyle


If you have been working hard all of your life, don’t you think you get to reap the rewards now? If you have invested in your property, specifically your home, because of that hard work you can use it now to your advantage by making it pay you back. How? Through reverse mortgages.

But what are reverse mortgages anyway?

Reverse mortgages are a financial tool that senior homeowners, specifically 62 years old and up, can use to access and convert some portion of their home equity into a retirement income tax-free.

This tool is federally insured so it does not only provide supplemental retirement income flow while simply staying at home and living independently but also the financial security – all these without making mortgage payments per month, giving up title or selling their homes.

You might probably wonder the tool is called a reverse mortgage. The reason is unlike another tool which is the forward mortgage, in which you are doing the payments, in reverse mortgage you are the one who is being paid. For so long as you are living in your property, you don’t make any reverse mortgage payments.

And when the due comes, you won’t have anything more than the total appraised value of your home to owe the bank. And what’s more? The bank does not get any remaining equity in your home as it remains yours to enjoy.

How reverse mortgages are federally safeguarded?

The government has set some ways to protect the interest of the senior citizens and shield them from any lending predators. Included is the policy mandating that there must be third-party counseling sessions before any processing of the application occurs. It is also a protection policy that mandates any application must not be processed unless it is taken personally by the senior citizen. The objective is to protect them from any mail or phone scams.

What are the benefits?

With reverse mortgages, you are set to take advantage of financial security so you stay in your home and feel more positive than ever about your future now that you are retired. You also have no limitations when it comes to your expenditures and that is the benefit of receiving supplemental cash flow to your retirement income.

Additionally, you have peace of mind because you are protected and fully insured. You don’t have to worry that after the reverse mortgage loan you will be paying more than your home’s total appraised value.

The money received from a reverse mortgage is not taken as your income; therefore, it is also under tax-free financial benefits. And for you to qualify, you don’t have to have income. You also do not make monthly payments instead you get additional monthly cash flow. It is through reverse mortgage too where you can start paying off any existing mortgage or eliminating debts.

And what are the other benefits?

Of course, with the extra cash you get from reverse mortgages, you can spend however you like, such as making home improvements or repairs, paying for the college education of your grandchildren, traveling for your own enjoyment or visiting relatives and friends or simply vacationing, making unexpected large expenses. Or simply, living a lifestyle more comfortably than what you prepared for.