Many baby boomers are now getting to the stage where they are thinking of retiring. But many are finding that although they have worked a lifetime, their retirement incomes are simply not going to be as high as they expected. This has led to the increased interest in reverse mortgages.
What is a Reverse Mortgage?
Reverse mortgages allow senior homeowners to turn the equity in their home into cash. You can receive money from the lender but do not need to make any repayments on it as long as you are still living in the property. When you move out of the house or sell it, you will then repay the mortgage from the proceeds.
What Payment Will I Receive?
You can receive either a lump sum, a line of credit or a monthly income. Some lenders will allow you to take a combination of these.
What Can I Use the Money For?
The cash can be used for any purpose. For instance a lump sum could be used to pay for medical bills or to have the house updated. Maybe wheelchair access needs to be provided with halls being widened or a ramp installed. You could even use a lump sum to go on the holiday of a lifetime. A monthly income could be used to supplement existing retirement income.
What Are the Downsides to a Reverse Mortgage?
The main one is the amount of equity in the property will be reduced when you come to sell it. This could be an issue for you if you have wanted to pass on your property to members of your family.
What's the Next Step?
You should speak to members of your family about the advantages of getting a reverse mortgage. You can also get independent advice from a housing counselor.reverse mortgage bank failure
Forward vs Reverse Mortgages
Getting Equity Out Of Your Home for Retirement
How To Use A 1st, 2nd Or Reverse Mortgage To Get Cash From Your Home
Someone suggested reverse mortgage loan for my Michigan home
Reverse Mortgage Lenders
florida reverse mortgage
Need advice on Utah reverse mortgages? Check out at http://www.reverse-mortgage-choice.com. Discover if you could benefit from a reverse annuity mortgage.reverse mortgage programs in chicago: reverse mortgage bank failure
reverse mortgage programs in chicago: fixed term reverse mortgage
Article Source: www.articlesnatch.com