Reverse Mortgage Retirees - Who Qualifies... ?!
Reaching retirement age can be both liberating and frightening. After all you no longer need to be at the office from 9 to 5 and the valuable time you have left can be spent traveling or with your loved ones. However, reaching retirement age is not without its disadvantages. Besides maybe having too much time on your hands the main disadvantage is the lack of income. Sure most people have a retirement savings fund or a 401K plan to fall back on and there is always social security. However these funds can quickly deplete, and unless you want to go back to work you will have to adjust your lifestyle to match your new fixed income. Thanks to the passing of the American Home Ownership and Economic Opportunity Act and the National Housing Act there is a way for senior citizens to cash in on one of their biggest investments...their home. They can do this by taking out a reverse mortgage.
A reverse mortgage, in simple terms, means that you will receive payments based on the equity in your home through a reverse mortgage loan. You can obtain a reverse mortgage through a bank or a reverse mortgage broker. A reverse mortgage can either be paid in one lump sum, monthly payments, or by line of credit.
There are of course advantages and disadvantages to reverse mortgages. The advantages of obtaining a reverse mortgage are that you will receive retirement income and enjoy financial freedom during your retirement. A reverse mortgage can be used to pay for an unexpected medical bill, any outstanding debts, or monthly bills. It can also be used to maintain your lifestyle, take a vacation, buy a new car, or generally improve the quality of your life. A reverse mortgage is basically there to help senior citizens through the financial restraints of retirement.