Reverse Mortgages For Seniors
Have you ever heard of reverse mortgages? It seems to be something unique for senior citizens that can give them a big boost of cash if they’re in the right financial position with their homes.
Here’s the deal. Reverse mortgages allow you to borrow against the market value of your home. If your home is older, for instance, it’s probably worth way more now than it was when you bought it. So, you can take out a reverse mortgage, which is kind of a loan based on the worth of your property, and use that money any way you see fit. You even have the choice of getting paid monthly as opposed to taking it all at once if you choose to. Or you can use it as a line of credit, only it’s your money and you don’t have to pay it back.
This is a unique way to help seniors pay off all their bills before social security kicks in, or if they have no bills to set it up like you’re continuing to get paid as if you were working. Adding social security to that might allow you to get paid a lower sum, if that’s what you want to do, so the money stretches out longer.
What’s in it for the banks? They get ownership of your home after you pass away, and if the market value holds, they’ll make a mint. Home ownership usually goes up, except for these past three horrible years, so they’re often willing to hedge their bets.
Of course, you don’t get off totally scot free. I did mention that your financial position had to be good. You have to actually pay off what your home is worth, and if there’s any other claims against the house those have to be taken care of as well. And you still have to take care of the house, and anything that goes wrong you have to pay for that. In a way it’s like you’re now renting your own home, but have to take care of all the upkeep.
I figure it’s something worth looking into. If your house is appraised at a high rate, this could be quite beneficial to you. At least it’s another option to consider.