Reverse Mortgage Loan Blog

Economic relief . . . we do not hear enough about it, do we? The last two years have been full of “the sky is falling” feelings. We have watched our real estate begin to depreciate. Although this affects us all, one group that is impacted dramatically is our seniors….

It is true that California real estate is a gold mine for the long haul, but it is an endurance test over time. Time is something that we need to address for those that cannot afford to wait seven to ten years for the pendulum to swing back the other way. There is, and has been, a financial product that offers both economic relief and relief from time. A reverse mortgage is a fascinating solution to a senior’s economic needs.

The historical objections to a reverse mortgage have been:

1)Will I lose my home?
2)Will the income that it generates affect my social security?
3)Will the income affect my medical insurance?
4)Will a reverse mortgage mean that my children will have nothing to inherit?
5)Do I have to own my home free and clear to qualify?

Today, the answer to each of these questions is a resounding, “no!”

A reverse mortgage has evolved, with government help, to be one of an individual’s great sources of economic relief. Why? Your credit and income do not affect qualification and you do not have to make a payment on the loan for the rest of your life!

In the past, a bank would be put on title with you when you obtained a reverse mortgage and you would be selling your home to the bank over time. This is not the case if your reverse mortgage is government insured. The Federal Housing Authority (FHA) and Housing and Urban Development (HUD) are now standing behind many reverse mortgages to ensure that banks will not be put on the title of your home and you will be able to live in it as long as you would like. There are also options for a reverse mortgage that enable you to continue receiving money even if your home has depreciated below the money you have already received.

What can the money be used for? This is the catch; the money can be used for anything you want! Because the money comes from your equity, it is tax free and does not affect your social security or medical insurance. If you wanted, you could use it to help pay for a grandchild’s schooling. Maybe you want to invest some of your equity and receive interest income adding to your monthly cash flow. Maybe you are traveling and you just want to upgrade your hotel and airline flight. Whatever you do, this is your money.

One need that a reverse mortgage may fill is relief from a house payment. It also might be how you are able to afford your taxes and insurance on your home. It may be how you afford long term care in your home and stay in your home. This may be a way to avoid going to a retirement home. If you are 62 plus and in foreclosure, a reverse mortgage can take your property out of foreclosure and save your home and your hard earned equity. It is also an opportunity to create wealth for your estate to leave to loved ones.

There are many variations and options concerning a reverse mortgage. Like all long term financial decisions, it is recommended to contact an approved reverse mortgage specialist that can help to tailor this financial product to your needs and likes. Not all reverse mortgages are the same. Contact a specialist in your area.

We continue to hear how our government is trying to help the real estate situation in our country, but most of these programs are not touching us as individuals. A reverse mortgage may help you now, where you are, and improve your quality of life beginning today.

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