Is a Reverse Mortgage a Good Idea for Seniors?

Whenever I am asked about reverse mortgages I find myself cringe. If you are a homeowner over 62, this is a unique opportunity to acquire spendable funds from your home, even if the mortgage is not paid off. But, before you do consider what you are going to use the funds are for and is it your only resource.

For homeowners over the age of 62, you can obtain a reverse mortgage (also known as a HECM, a home equity conversion mortgage), which gives qualified senior homeowners a solution to help fund their retirement needs.  More importatnly to most independent seniors, a reverse mortgage helps them with the resources needed to live in their home as long as they wish.

Here are a few facts you need to know about a reverse mortgage:

  1. Candidates must be at least 62 years of age, have significant equity in their property and be looking for a reverse mortgage on their primary residence only.
  2. Anyone interested in applying for a reverse mortgage is required by law to complete a 45-minute counseling session with a HUD (Housing and Urban Development) approved counselor to really understand the ins and outs.
  3. Payout from a reverse mortgage can be done several ways: all at once in a lump sum of cash; as a regular monthly loan advance; as a credit line that lets you decide how much cash to use and when; or you may have the option to choose a combination of any of these payment plans.
  4. The amount of cash you can get from your home’s equity is determined by several factors including age, home value and location and current interest rates.
  5. And lastly, please remember that reverse mortgages may have tax consequences, may affect eleigibility for assistance under Federal and State programs, and may have an impact on the estate and heirs of the homeowner.

If you are considering a reverse mortgage and would like more information, please go to http://www.reversemortgage.org

About Suzanne O'Brien

The role of a real estate agent is to guide you through the buying and/or selling process and take the time to make sure you understand every step of the transaction. I am absolutely committed to fulfilling your needs with the highest level of professionalism, expertise and service. My commitment to listening and satisfying your needs are the foundation from which a solid business relationship is built. I realize that people do business with people they trust. I am interested in what is best for you, the client, and am committed to establishing a long-term relationship based on trust. In addition, real estate is often times very personal, about family and home and pride myself in developing relationships that now call clients my friends. I pride myself on being knowledgeable and staying current with the fast pace changes in the industry. I approach each clients’ needs individually and am constantly aware of current and upcoming inventory. My creative approach to the business has earned me wonderful associations with both clients and other real estate professionals. I am always working for you…I feel the responsibility to make your dreams a reality…one move at a time.
This entry was posted in Advice On Home Ownership, Finance, Home Buying/Selling, Senior Community, Uncategorized. Bookmark the permalink.

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