Reverse Mortgage

In case you have a home mortgage and you want to rid yourself of the monthly payment, a reverse mortgage can be of help. As one grows older, he must see to it that his money outlives him, instead of the other way around. Pension plans are getting cut down or eliminated and expenses nowadays continually get higher.

Seniors of today are compelled to look for other options. To make ends meet, some are forced to go back to work, while others are drastically cutting their expenses that they can’t enjoy retirement years. Seniors that either own their home outright or even if they do have a mortgage on the home can look towards a reverse mortgage to solve their financial problems.

If you were able to pay off or pay down your mortgage enough, you may utilize your home equity as income for the rest of your days. There are so many option when you look into a reverse mortgage.

For instance, if you’re 70 and your home is valued is $200,000, but the mortgage owed on it is still $50,000, a reverse mortgage can come to your rescue. You could start receiving a monthly payout of $374 for the rest of your life, tax-free.

If you had $600 for a monthly payment, then when you eliminate that payment, with the additional $374 a month you are receiving, then that would be a net increase of almost $1,000 a month or close to $12,000 a year, tax-free.

This is a mere example, myriads of options are available. Majority of seniors aged 62 and older may have not taken this into consideration, not realizing how much help a reverse mortgage can give them.