If you need an income to live on in your older age, or to help supplement the income you already have, or need a very large amount of cash, a reverse mortgage may be right for you. Therefore, if you are a senior citizen, (age 62 or older), and you need some extra income, you may want to look into getting a reverse mortgage. You must own your home, or at least almost own your home in order to qualify for a reverse mortgage since you are basically giving your home to the lender in exchange for cash. Therefore, the amount of income you receive will depend on how much money your home is worth since lenders get the money back when selling your home, plus interest.
You do not need to worry about outliving your income from your house. You cannot outlive a reverse mortgage and therefore, lenders cannot sell your home until after the last surviving member of the household either passes away or moves. Once that happens, lenders get their money back and anything left over belongs to the estate, so it would be a good idea to have a will in place so that anything left over can be divided up according to your will. If the house sells for less than expected because of the housing market, the lenders have to take the loss if it is not enough to pay for the reverse mortgage. Therefore, assets cannot be taken from the estate to pay for the loss. It will therefore be important to include your assets in your will as well as any money that may be left over from the sell of your home. Home values could rise quite a bit, resulting in a lot of money left over after the sell!
Even if you are not of age yet, but you are thinking of getting a reverse mortgage for the future, be sure your home would qualify! If not, and you are thinking of moving anyway, be sure to move into a home that would qualify. Most homes qualify, but if you are in a mobile home, it has to have been built within the past 30 years, must have a permanent foundation, and must pass an FHA inspection. If you are in a condo or a townhome, some of them qualify, so check to see for certain if yours will qualify.
See about getting a reverse mortgage today!
