Seniors all across America have looked to reverse mortgage as a means to raise finances to help them retire more comfortably. The term reverse mortgage though new to some is not a new term. Seniors have been taking advantage of this mortgage product for some time now. This can be a very powerful financial tool for seniors to utilize in their retirement years.
Due to the massive amount of confusion and misconceptions surrounding this financial product, it behooves seniors to seek out professional advice when considering a reverse mortgage. After reading this article, you should able to determine if a reverse mortgage is an option for you or not.
What Is A Reverse Mortgage For Seniors?
A reverse mortgage allows seniors 62 years and older to turn the equity in their home into cash. They can choose to receive that cash in a lump sum, on a monthly basis, or in a combination of both. Either way, this is a powerful way of tapping into their equity without taking out a line of credit which demands a monthly payment, and can put their home in jeopardy of foreclosure should for some reason they default on their loan.
The attractive benefit for many seniors is that there are no monthly payments to make, unlike a typical mortgage. The money that is drawn down is tax-free.
While many baby boomers are coming up to retirement, they realize that thе аmоunt of іnсоmе that they аrе gоіng to receive during thеіr rеtіrеmеnt іѕ nоt gоіng tо bе sufficient to live on. Thіѕ hаѕ led to thеrе bеіng a significant increase in interest іn reverse mortgages.
The money received can be used for your desired purpose. This includes, but is not limited to:
Supplementing existing retirement provisions.
Paying fоr mеdісаl care or саrrуіng out mоdіfісаtіоnѕ to the hоuѕе ѕuсh аѕ іnѕtаllіng a ramp or downstairs ѕhоwеr.
You could еvеn uѕе thе money to go on a vacation of a lifetime or buy a new car.
When Should A Reverse Mortgages For Seniors In San Diego, California Be Considered?
There are several reasons why reverse mortgages for seniors may be right for you or your parents, so we have several typical examples below.
One example of taking out this mortgage would be if you are relying only on the age pension as your only income and are finding it challenging to meet regular bills. This downgrades the quality of life at this age so here a reverse mortgage would have a beneficial impact. By taking out a reverse mortgage in the form of regular payments, you can make sure that the bills are paid and that you still have money to have a good quality of life.
Another typical example is where the home itself may need some upgrades to make sure that it remains comfortable if you are planning to have your aged care at home. The kitchen may be outdated with old appliances and in need of an upgrade. The roof may need work to keep it leak proof or the heating and cooling may need replacing to keep the home comfortable.
The home may also need to be made more friendly for seniors, so it remains a safe environment as you become frailer through age. This may mean adding ramps, grab bars and handrails or a stair lift to the home to make the house safer for you.
Meanwhile, you need to keep in mind that by borrowing against your property now that the loan will need to be repaid in the future. This will lessen any inheritance for your children as they will only be able to receive the amount left over after the real loan repayment. At Premier Home Mortgage of California, we specialize in special situations such as down payment assistance, first-time home buyers, Home Ready, low down payment, reverse mortgages and more.
We believe the income from a reverse mortgage for seniors does not in any way affect the revenue that senior may receive from other sources. Like with any other major decision, seniors are strongly encouraged to seek out professional help when considering a reverse mortgage. So feel to reach us at to ask questions about our reverse mortgages for seniors in San Diego, California.Reverse Mortgages For Seniors San Diego California
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