A Reverse Mortgage:
Security In Your Home
There are a number of innovative financial products that can provide the measure of financial and personal security people—particularly older Americans—need today. Reverse mortgages are an option available to help those 62 and over avoid an unwanted move. These home equity release products provide cash for whatever you choose, while at the same time allowing you to live securely in your own home.
Too often, people are prematurely forced out of their homes and into long-term care facilities, nursing homes, or the homes of relatives or friends. Sometimes it’s because their current home does not accommodate a disability or requires renovations or repairs. Sometimes retirees on fixed incomes cannot afford the upkeep of a house on top of healthcare costs. A major decision like the decision to move from your home should be made with information on all of the options available.
With a reverse mortgage, you can use your greatest asset, your home, to afford the things that will enhance your quality of life and let you stay in your home longer. You could receive an income to use as you choose: home renovations, healthcare, travel, education or an available financial cushion — whatever you desire.
Here are 6 important facts about reverse mortgages that may help you determine if this option is for you:
- There are no income or credit requirements to qualify.
- There are no required repayments – the loan is repaid when a maturity event occurs.
- The money you receive is tax-free.
- You retain ownership of your home.
- The money is yours to use in whatever way you choose.
- You are required to pay your property taxes and keep your home in good repair, just as always.
If you are considering a reverse mortgage, this is an excellent time to find out exactly how much money is available to you. The government-insured reverse mortgage program from FHA/HUD has recently increased its lending limits. That, coupled with today’s low interest rates, may mean more cash available to you. The amount of money available to you varies based on several factors, including the county you live in, your age and the value of your home.
This is the product that can turn the equity of your home into extra, tax-free income or a line of credit that you can use as you choose. You maintain title to the property for as long as you live in your home. Today, more than 50,000 older Americans have benefited from a reverse mortgage. We encourage you to ask questions and seek the advice of your family or advisors in helping you decide if a reverse mortgage is right for you.