A Reverse Mortgage is a government-insured (non-recourse) loan for people 62 and better that converts a portion of the equity in your home into a tax-free asset. You retain ownership of your home and you can will the property to your heirs who will not inherit any debt.
The loan proceeds may be used for any purpose. First, your current mortgage (if you have one) will be paid off reducing your monthly expenses. Seniors may use the proceeds to pay Medicare Part B and D costs, remodel their home, pay off debt, buy a new car, purchase an investment property, buy an RV, pay for long term care, delay collecting social security until age 70, pay for a retirement plan prepared by a professional, help a child or grandchild with their education, or down payment on a home, or pay for medical expenses or devises that allow you to live at home. The list is endless!
Many times a line of credit is available that will grow at about 5% a year and, unlike a HELOC, cannot be cancelled or called due at the whim of the lender. You can never owe more that your home is worth, so you have safeguarded your assets when you do a reverse mortgage. Receiving a monthly income stream is also a popular choice making the Golden Years more enjoyable.
Contact your local Reverse Mortgage Expert to learn how this very versatile product may be right for you. You owe to to yourself and your family to know the facts.
This article first appeared in My Primetime News, July 28, 2018.
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