Are you a homeowner and are 62 year of age or older? It could possibly benefit you by applying for a reverse mortgage or a home equity conversion mortgage. By receiving a reverse mortgage you will be able to receive tax free money each month or in one lump sum to help out your family members, pay down medical bills, or just have a little extra cash to enjoy the retirement that you worked so hard for and would like to enjoy. Healthy Financial Habits is here to let you in on what a reverse mortgage consist of and how it works.
You may be wondering what a reverse mortgage is. A reverse mortgage is a loan that allows you to access the equity in your home and still remain in your home. While in your home, you can enjoy tax free money that will not affect your social security or Medicare benefits. In order to qualify for one of these loans you must be at least 62 years of age and have some equity in your home.
While receiving a reverse mortgage you must remain the primary resident of your home. After receiving a reverse mortgage you are not required to pay back any money until you actually permanently leave your house. Just think about not having to make payments and being able to access the cash from your home. You are most likely eligible for a reverse mortgage as long as you have a strong equity position or your home is paid off.
You may be thinking that this sounds a lot like a bank equity loan but there is no comparison. Unlike a traditional equity loan, you do not have to make monthly payments and the amount that you receive is not dependant on your income. Reverse mortgages only take into consideration your age, home value, current interest rate, and how large your balance is.
With a reverse mortgage you can increase your monthly income in two ways: Keep the money that you pay each month for a mortgage and add the additional loan advance payment that you will receive each month. After doing some research we found that One Reverse mortgage company from quicken loans seems to be a reputable company with over 33 years of combined experience. While shopping around for a reverse mortgage, it is important to remember that there are several options out there and you must choose a company that works best for you. There is no such thing as a reverse mortgage company that is a good fit for everyone.
What do you plan to do with your tax return this year? Healthy Financial Habits wants to know. We have created a poll located at the bottom right of this page. Here you are able to vote to let us know how you are going to spend your money and also view the poll results.
Author: Allen Dukes