Reverse Mortgage is an option!
I have heard a lot about a Reverse Mortgage, but I never really gave it much thought. After all, I wasn’t at the age where I needed to be thinking about that yet. However, it was a good option for my mom. My dad worked all his life but never had a pension fund or 401K. So when he passed 21 years ago, we wondered if my mom was going to be alright with just social security.
Retirement is a time to kick back and relax, but when you are short on money it can be more stressful than fun. If you own your own home, a reverse mortgage may be the answer. It is a special long-term home loan that does not have to be paid back, even in part, right away. Therefore, you can use it to avoid the extra bill that comes with a traditional loan. If you qualify, you do not have to repay all of what you owe for as long as you stay in the home. A tool called a reverse-mortgage calculator will be used to determine how much you can borrow. That amount will be based on the total current value of your home combined with government reverse loan regulations.
After all, the house was paid for and we wanted her to be able to live comfortably. We checked into a reverse mortgage and if it was right for her.
A reverse mortgage helps to supplement your income so you can live comfortably, and still be able to live in your house. As long as you have equity in your house, you are able to get a reverse mortgage.
Instead of you making a mortgage payment to a bank, they pay you. You are able to choose between a lump sum payment or monthly payments. Before you can apply, you must meet with a representative from the US Dept. of Housing and Urban Development. They want to make sure basically that you know what you are doing and understand exactly what it means.
Once that is done, they will come and appraise your house and even come to your house to close. This will help her to live a full fun life and travel if she wants to or pretty much do whatever she wants. I’m sure that one day down the road, we will be having to make that decision also. You have to be at least 62 years of age, so we have a few years to go.
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Topic: reverse mortgage