Reverse Mortgages
Your Family And Friends Can Have A More Comfortable Retirement In Their Own Home
They’ve worked hard to own their home. Now you can help family and friends who are 62 years or older put that home to work for them. The Reverse Mortgage program enables them to convert some of their home’s equity into tax-free funds for any personal financial need.
What is a Reverse Mortgage?
A reverse mortgage allows you to borrow against the equity you’ve established in your home. Instead of making monthly payments, you can choose to receive them. That’s the “reverse” part of a reverse mortgage. To be eligible, you must be age 62 years or older and own your home free and clear or have a remaining mortgage balance that can be paid off by the reverse mortgage. You’ll want to consult a tax advisor to confirm this, but in most cases a reverse mortgage gives you access to tax-free funds, though it may impact your eligibility for some benefits that are based on need.
Why Get A Reverse Mortgage?
There are no restrictions on how you may use proceeds received through a reverse mortgage. You can direct the funds toward a variety of purposes, including:• Supplementing retirement income• Remodeling or repairing your home• Paying property taxes• Covering healthcare expenses• Planning for long-term care needsYou can even use your reverse mortgage funds to purchase a second or vacation home.
Three Essential Facts
Making an educated decision begins with addressing common misconceptions that keep many senior homeowners from looking into the advantages of a reverse mortgage. Contrary to what you may have heard — as long as all property tax, insurance and maintenance requirements are met:
1. You cannot owe more than the value of your home.
2. You retain title to the property.
3. You receive payments instead of making them. Please ask me for details about when repayment may be due.
|
|
|
