Reverse Mortgages Help Senior Homeowners

Are you "house rich", "financially poor" and 62 years of age or older? If your answers are yes, then a reverse mortgage may be for you.

Many senior homeowners find themselves in the situation where their home is paid for (they are "house rich"), but they are having a difficult time paying their monthly bills (they are "financially poor"). The only solution appears to be to sell their home. But then where would they live? And if they got an apartment, they would have to pay rent and add to their monthly bills.

There may be another solution.

How about a loan which you do not have to pay back as long as you live in your home? Almost sounds too good to be true doesn't it?

Well, there is such a loan. It is called a reverse mortgage.

With reverse mortgages, homeowners (age 62 and older) can receive monthly payments, a lump sum, or simply have access to money (like a line of credit) in case of an emergency. The money is actually loaned to the senior homeowner and draws interest for the lender. However, the senior homeowner does not make payments. Rather, the loan is not paid off until the senior homeowner stops living in the home.

Even if a senior homeowner receives all of the money that he/she can receive based on the value of his/her home, no payments are due until the senior homeowner sells his/her home, moves away, or dies.

Reverse mortgage loans can be helpful for senior homeowners who:

    - need to supplement their monthly income;

    - need a lump sum of money for some reason such as repairing their home; or

    - want to have access to money in case of emergency.

Of course, as with everything, there can be drawbacks to reverse mortgage loans. In some cases, senior homeowners receive all of the money that their house value allows and the senior homeowners' heirs inherit nothing from the home. Or if the senior homeowner sell his/her home, he/she receives very little from the sale because most of the sales proceeds are used to pay off the reverse mortgage loan.

This is general information only. If you have any questions about reverse mortgages, talk with a mortgage lender, and if you have any legal questions, talk with a lawyer licensed in your state.

Stop! Wouldn't you like to know if a reverse mortgage is right for you? Get more information here on a Reverse Mortgage. And click here for more insights on Disadvantages Of Reverse Mortgages.

This article may be republished, but the wording must not be changed and the above two links must remain active.