1. First as well as most important. There is little difference between a reverse mortgage loan and a regular mortgage. The manner in which you take title is identical. You still own the property. You may sell or re-finance any time you would like without fee. What's more, you get to keep any outstanding equity. These features are all just like any other home loan you may have experienced.
2. The largest difference is you will not have to make any sort of payments. This is for so long as you live in the property as your principal residence. The loan will have to be paid back upon your passing away or in the event you move out, but while you live there, this mortgage is without payment. The primary residence rule applies to all borrowers on the mortgage, so you as well as your spouse must no longer live there for the loan terms to be required to be remunerated.
3. Way too often, retirement for seniors comprises of too much stress and worry. This really becomes evident on the realization that they may outlive their investments accounts. However, there is a light ahead. If you own your residence or perhaps have equity in it, you may a candidate for a reverse loan. You are able to to get a lump sum, a monthly income, a credit line, or a mixture of any of the previously mentioned. you get to figure out how you would spend the cash.
4. The proceeds of a reversible loan aren't taxed and will not have any kind of change on your Social Security. In the event you receive Medicaid, however, it is advisable to bring that to the attention of your loan officer. There could be specific details required to best safeguard you.
In conclusion, your potential to tap into your home's equity will be the advantage, while the drawback, if there needs to be one, is that you are taking a portion of your equity. The quirkiness is that when you receive government assistance by using programs like Medicaid, you've got to be careful to not disqualify yourself.
Too many times I observe our aged population suffer because their income is insufficient to fund their own retirement. This makes me passionate about training our mothers and fathers and grandparents to the advantages of a reversible mortgage loan. With just a modest amount of your time and and open mind, you'll see how great the possibilities are, using the assets you already possess.