Is a Reverse Mortgage Right For Me?
Your home is your nest egg which can yield money for your retirement. More Info to help you decide.
Let's face it. A reverse mortgage isn't for everyone. But for many seniors they're a perfect fit. The following questions can help you ascertain if a Reverse Mortgage is for you:
• Do you have equity built up in your home?
• Are you looking to stay in your home for the foreseeable future?
• Would extra money enable you to do the things you want to do?
• Are there medical or cost of home care situations you face where a reverse mortgage would make life easier for you?
If you answered "Yes" to the above questions,perhaps a reverse mortgage might be an option worth considering. One of the common worries about reverse mortgages is concern for your heirs. Discuss Reverse Mortgages with your family and trusted advisors. Perhaps there are other options that will work better than a Reverse Mortgage.
Many Uses For a Reverse Mortgage
Help at Home - A Reverse Mortgage Can Help
According to an AARP study, 89% of senior citizens want to remain in their homes as they age. This has been termed "aging in place". I have found this to be true over the years as I have helped senior homeowners to remain in their home with a reverse mortgage in place.
In 2012,I was called to the home of an 86 year old gentleman who wanted to pay for his in home care and do a few things with a reverse mortgage. His nurse had found my website online, and she contacted me. After reviewing the parameters, and after he obtained HECM counseling, he got his reverse mortgage.
This sweet man, who I knew for five years until he passed away, was able to get $2,500 per month directly deposited into his account as well as a brand new kitchen.
As time went on, and he needed more in home care, people were hired, and his reverse mortgage continued to pay $2,500 into his checking account per month. It got quite expensive, but it helped.
Whatever situation or disability you have, or perhaps you are a relative or a caregiver, a reverse mortgage may be just what you've been looking for.
Whether you have guardianship or a power of attorney or a life estate, it can all work with a reverse mortgage in place.
Power of Attorney
If you have a Power of Attorney, it must be durable, meaning it has to have been instituted prior to you becoming incapacitated. A power of attorney is a legal document that gives someone you choose the power to act in your place. In case you ever become mentally incapacitated, you need a "durable" power of attorney for medical care and finances. A durable power of attorney does not end when a person becomes ill but continues and is durable. To obtain a durable power of attorney, you must show in the document your intention that the powers will continue despite incapacity. See your attorney for more information.
Important Questions & Decisions
QUESTIONS THAT NEED ANSWERS.
Asking the right questions can help you determine if a Reverse Mortgage is the right vehicle for you. After all, a Reverse Mortgage is not for everyone.
* Am I going to stay in my home for the foreseeable future? If you are planning to move in a few years, it's not the best option for you.
*How would my life change if I could get rid of my mortgage payments? For many seniors, getting rid of a mortgage payment is life changing.
* What would it be like to have money to do the things I've been wanting to do and to have my home work for me?
*How long has it been since I was able to go on a vacation, buy a new car, or have surplus of money for emergencies?
All these questions are legitimate questions senior borrowers might consider. Consult with family and trusted advisors. A free quote will give you the numbers and figures so you will see firsthand how much money is available to you.
Equity Loans and Reverse Mortgages
Similar But Different
Reverse Mortgages and Equity Loans - Similar, But How Are They Different -Although a Reverse Mortgage is a lot like an Equity Loan, there are some significant differences.
(a) With a Reverse Mortgage your credit rating is not a determining factor.
(b) Unlike an equity loan you make no monthly mortgage payments.
(c) With an Equity loan, you would have to refinance to increase your line of credit. With a Reverse Mortgage, your unused line of credit increases year after year giving you access to more funds without the need to refinance. And whatever amount in the line of credit remains unused, you do not owe the lender nor do you pay it back.
