Are you over 62 years, looking for a little extra money and own most if not all of your home? If the answer is yes, then a reverse mortgage may be exactly what you're looking for. Here are some of the benefits a reverse mortgage can offer you:
#1: Reverse mortgages pay you. Instead of making payments to a lender, the lender makes payments to you. Of course as payments are made, your equity in your home decreases. It is, however, a great option if you don't plan on leaving your home to family members after you're gone.
#2: You can use the money you receive any way you choose. For example, it can be used to put your children or grandchildren through college, to buy groceries, to pay for healthcare, to buy a new car or to go on that dream vacation you've been putting off for 30 years.
#3: You can receive your money in a variety of ways:
* Lump sum
* Fixed monthly payments either for a set term or for as long as you live in the home
* A line of credit
* A combination of the above.
#4: A reverse mortgage isn't limited to single family homes. In fact, unless you own a manufactured home built before 1976 or an apartment in cooperative housing, your home likely qualifies.
#5: Your benefits, Social Security or Medicare are not affected by a reverse mortgage. However, if you are on Medicaid, any reverse mortgage proceeds must be used immediately to continue to qualify for Medicaid.
#6: No more monthly payments. You can use a reverse mortgage to pay off any existing debts. And your reverse mortgage loan is repaid when you no longer live in your home as a principal residence. The amount owed can never exceed the value of your home. Even better, if your home is sold and the proceeds exceed the amount you owe on your reverse mortgage, you or your estate receives the profits.
While a reverse mortgage is generally an excellent idea for many, there are a few drawbacks. Service fees and closing costs can make a reverse mortgage an expensive option, particularly if you're planning on selling the home in a few years. If you're not planning on living in the house a long time you may want to consider a home equity loan, because they're much less expensive and you can still take the dream vacation you're looking for.
Related Articles
Shop for a Mortgage Before you Shop for a House
By: Joe Smith | 12/04/2007 | Finance
Knowing how much financing you can get focuses your search.
The Benefits of a Reverse Mortgage Calculator
By: Terry Edwards | 02/10/2007 | Mortgage
For figuring out a general idea on what any reverse mortgage loan payment amount may be or even for help in determining how much you can borrow, a reverse mortgage calculator can be a great tool. This article will show you where to find a calculator and how it can benefit you.
Saving on the Home Front
By: Alive Online | 02/04/2008 | Personal Finance
Saving money is becoming harder as petrol and grocery prices rise along with everything else. Some advice for serious savers is to have a chat with an elderly person who has come through all the probems of past decades and to ask them what they did to cut down. They'll probably mention home cooking as opposed to eating out and buying takeaways or those strange hybrids partially cooked packet foods in the supermarket.
Reverse Mortgages - What to Look for in a Reverse Mortgage Lender
By: Terry Edwards | 06/10/2007 | Mortgage
If you have decided to get a reverse mortgage on your home the next big decision you will have to make is how to choose the right reverse mortgage lender. There are many out there to choose from, but how do you know which ones are the best. Keep reading this article to uncover some great tips on how to choose the right reverse mortgage lender that will meet your needs.
The Best Way to Use a Reverse Mortgage Calculator
By: Terry Edwards | 19/12/2007 | Mortgage
Reverse mortgage calculators offer an excellent opportunity to generate loan estimates and to get an idea of the possibility of how much money you will receive from a reverse mortgage. However, note the word estimate. These calculators are simply a tool to give you an idea of what you can reasonably expect to receive when you negotiate a loan.
How Does a Reverse Mortgage Work?
By: Terry Edwards | 30/09/2007 | Mortgage
Are you a senior homeowner looking for a way to get extra funds during your retirement years? Well, you may have heard about a reverse mortgage, but are wondering how does a reverse mortgage work? Here's a closer look at the basics to help you know if a reverse mortgage is right for you.
All you Need to Know About the Aarp Reverse Mortgage Page
By: Terry Edwards | 04/11/2007 | Mortgage
The AARP Reverse Mortgage page can help answer so many questions you may have in regards to getting a reverse mortgage. From understanding what a reverse mortgage is to knowing whether it is your best option. Here is a look at the most common questions and answers that people have in regards to this type of mortgage.
Tips For Finding The Right Mortgage Company
By: Eddie Lamb | 01/03/2008 | Mortgage
When shopping around for a mortgage to finance or refinance your home, the options are definitely overwhelming. What seems like a good deal can turn into a nightmare of fees and high interest rates down the road.
Got a Question? Ask.
Ask the community a question about this article:
Frequently Asked Questions
Foreign national by indian origin intrested in nri investment in dairy farming in gujarat
By: kuber | 16-07-2008
I am a kenyan citizen resident of usa by indian origin intrested to invest in gujarat in dairy farming .Can i buy agriculture land or non agriculture land.Should we get special permisoon from rbi and if yes please furnish the authorities contact address and tlelphone . My email address is shrikuber@hotmail.Com
GUS
By: NO | 15-07-2008
How old is gus from the pa lottery?
Hi, I have three mortgages, two on my townhouse ...
By: Hank | 15-07-2008
Hi, I have three mortgages, two on my townhouse one being a home equity loan and the other being an adjustable, my single family home has an adjustable as well, I was curious about whether or not if I could get a consolidation loan to alleviate some of these mortgages, or would that be the best solution? The market don't seem to be a sellers market right now so selling my townhouse would not be in my best interest right now, but I really would like to get rid of that home equity loan and the two adjustables.
Jumbo reverse mortgages
By: S. Allen | 15-07-2008
What lenders are doing jumbo ($700,000 to $750,000) reverse mortgages and who can I contact for more information?
Jumbo reverse mortgages
By: S. Allen | 15-07-2008
What lenders are doing jumbo ($700,000 to $750,000) reverse mortgages and who can I contact for more information?
Has everyone forgotten the elderly?
By: Fkdupworld | 15-07-2008
Are they actually going to fade out paper checks?,,,,,,,WHAT ABOUT THE ELDERLY THAT ONLY USE THEM.I suppose they want it all electronic so that they can steal your money easier.
Q&A Powered by:
More from Eddie Lamb
How Business Bookkeeping Can Make Budgeting Easy
By: Eddie Lamb | 21/05/2008 | Finance
Small business owners generally fall into two categories. There are the business owners that let their accounting tasks, invoicing, and payables pile up on their desk - or even in a shoe box, until they're forced to face the music. Usually this happens around tax time.
Tips For Creating A Business Budget
By: Eddie Lamb | 20/05/2008 | Finance
Creating a business budget is very similar to creating a personal budget. However there are some differences. When you own a business, taxes are not directly taken out of your income, which makes your income and any quarterly tax payments extra important to track.
Cash Flow And How It Affects Your Business Plan
By: Eddie Lamb | 29/03/2008 | Finance
Your cash flow is the lifeblood of your business. You can be billing thousands of dollars each month but if it takes your clients 30-90 days to pay, your cash flow can be non-existent - particularly if you have expenses to pay while you're waiting for clients to pay you.
Budgeting - Where Do I Start?
By: Eddie Lamb | 29/03/2008 | Finance
The thought of putting yourself and your family on a budget can often feels overwhelming for many. The truth of the matter is that not having a budget, operating with financial blinders on, is much more overwhelming than creating and sticking to a budget.
Budget Is Not A Bad Word
By: Eddie Lamb | 16/03/2008 | Finance
Sit amongst a group of friends and associates and mention the word budget, and suddenly everyone has somewhere else they need to be. Usually no one wants to talk about budgets, no one wants to think about budgets, and no one wants to follow a budget.
Seven Business Expenses You Can Easily Cut Out
By: Eddie Lamb | 09/03/2008 | Business Opportunities
First-time business owners often find that their business expenses far outweigh their income. Particularly in the early days of starting a business - this is to be expected. Rather than going into debt and spending money you don't have, consider cutting some expenses until you're in the black.
Mortgage Interest Rates Explained
By: Eddie Lamb | 02/03/2008 | Mortgage
The world of mortgages is confusing at best. There are literally thousands of mortgage companies anxious to loan you money and hundreds of terms to learn.
Live Within Your Means
By: Eddie Lamb | 01/03/2008 | Finance
Living within your means is a liberating way to live your life. It means no debt is one of the most common causes of relationship stress.
Finance 
