As seniors today grow into retirement, more and more are finding that their savings and retirement plans are less and less unable to cope with the rising cost of medical services, inflation, and the burden of unforeseen emergencies. More and more seniors have to cash in annuities, investments, and take out high payment equity loans just to make ends meet. With this, the threat of bankruptcy and financial ruin are becoming more and more a reality for the everyday senior. One way to avoid all of these problems is with a Reverse Mortgage.
A Reverse Mortgage is a government sponsored program that has been federally regulated and insured by the Department of Housing and Urban Development as a way for seniors to maximize their financial situation with no risk to senior’s investment base or net wealth. What a Reverse Mortgage is designed for is to allow a senior to utilize the most common form of wealth, the equity in the home, to safely provide a large amount of funds. A Reverse Mortgage allows for a senior to generally receive anywhere of 30-60% of the home’s value, tax-free, and with no payment obligation. A senior is never required to pay back a Reverse Mortgage for as long as they live in their home.
The Reverse Mortgage will provide a lump sum, a monthly annuity payment, or a line of credit for the senior, or a variety of extremely flexible combinations. There are no restrictions on how the money can be used, and all of the funds are not included in an income tax assessment and they do not affect social security or Medicare benefits whatsoever. The entire program, including debt management and interest rate of the loan, is regulated by the Federal government to increase the safety for the senior, and because there are no payments or fees required during the life of the loan, there is never a chance for default or foreclosure on the home. The Reverse Mortgage has been designed to let allow the senior to use the accumulated wealth of the home, without having to sell the home, put their home at risk, or add to their monthly burden with a large immediate repayment.
The Reverse Mortgage is also commonly used as a means for seniors, who may not find themselves in financial difficulty, as a source of investment capitol. The investment marketplace of today has never been a creative or diverse and more seniors that ever are looking for a way to utilize some of these very productive investment vehicles, but are struggling to find the money. Cashing in a savings bond/stock/mutual fund/401k or having to do a 1035 exchange are normally the only means of finding the funds for a new investment, but with the Reverse Mortgage, a senior can make available a large amount of tax-free funds, without adding a monthly payment burden, and use the money for a large variety of undertakings. Besides investment, seniors use the funds from a Reverse Mortgage for long-term care or insurance policies, tax-free gifts for charities or for grandchildren’s futures, or to begin the distribution of their estate today instead of down the road when they will have less control of their legacies.
A Reverse Mortgage is another means for many seniors to maximize their financial situation while keeping their home safe from financial trouble and unfair or unscrupulous situations. The design of the program, the benefits of the funds, and the ease of acquiring one, has made the Reverse Mortgage one of the fast-growing senior financial ventures in America.
Troy Shellhammer is Reverse Mortgage Specialist with http://www.ReverseMortgageNation.com, a national Reverse Mortgage Lender. He can assist you with any reverse mortgage questions and can also provide a free educational video, book, and brochures. He can be reached toll free at 1-888-973-8377.
