Reverse mortgages are home loans that enable a homeowner convert the amount of equity in the home into a cash loan.
Reverse mortgages are only available to those who are 62 years and older.
As seniors become more concerned about their financial futures, reverse mortgages are a good option.
The main benefit of a reverse mortgage is that, unlike a traditional mortgage, there are no monthly payments. The loan amount can be paid in one lump sum or monthly to help with monthly living expenses.
With a reverse mortgages a homeowner does not have to surrender the title to the home.
The money received from reverse mortgages is not taxable.
Reverse mortgages do not affect social security and are a very effective way to increase finances during the later years of life.
It is important to thoroughly weight the benefits as well as drawbacks of reverse mortgages before determining that this is the best option for your financial needs.
You should also have a clear understanding of every aspect of a reverse mortgage, including when and how the loan will become due and payable, since there are certain situations that may cause the loan to become due and payable earlier than expected.
Your lawyer is the best person to discuss the benefits and drawbacks of a reverse mortgage and help you make the best decision.