subject: Retiring Soon? Consider a Reverse Mortgage for Continued Income [print this page] Retiring Soon? Consider a Reverse Mortgage for Continued Income
One of the biggest fears many people have is that after they retire, they will not have enough money to continue with the kind of lifestyle they are used to, or that they will even have enough money to survive at all. Even though most people have the best of intentions when it comes to saving for retirement, it can often be difficult with so many little expenses arising all the time. But if you are a homeowner, have little or no savings and are getting close to retirement, there is something that you can do to make sure that you will not have to face such problems: Consider applying for a reverse mortgage.
What Is a Reverse Mortgage?
A reverse mortgage is very similar to a traditional mortgage, it just works in reverse When you take out a regular mortgage on your home, you are obligated to make payments until the debt is paid off. But if you have a reverse mortgage, instead of you making payments, the lending institution makes payments to you. Anyone who is a homeowner and is 62 years of age or older is eligible to apply for a Reverse Mortgage, and this can be a wonderful way to make sure that you will have an income even after you have retired. As long as you live in your home, you will not have to repay the loan, provided you continue to pay your property taxes and homeowners insurance.
The tax free money you receive from a reverse mortgage is completely yours, to do whatever you want. Of course, if there is currently a mortgage owed on your property, this will have to be repaid before you can have any of the remaining proceeds of the reverse mortgage for your own use. For example, if you currently owe $25,000 on your home, and you receive a reverse mortgage in the amount of $150,000, you will actually receive $125,000, with the rest going to pay off the mortgage. You can use the remaining money to pay bills, create an annuity-like income, or even take that dream trip you have been planning for years.
How You Get Paid
There are many options when it comes to how you get paid when you have a Reverse Mortgage Quote. Many people opt to have regular monthly payments for a certain amount of time, so they can be assured of a constant income. Others like to have the money from the reverse mortgage all at once, which is also possible. There is also the option of having it as a line of credit, which is very popular, because it is money that can be taken out at any time. It is also possible to get payments that are done with a combination of the above methods.
If you are nearing retirement, and want to ensure that you are going to have money to live on and actually be able to enjoy retirement, you really need to consider getting a reverse mortgage. Check it out today, and see why so many senior citizens are taking advantage of this great form of retirement income.
