Benefits of Reverse Mortgage
Reverse Mortgages offer a wide variety of benefits for seniors (one person must be at least 62 years old). The most obvious benefit is your being able to greatly enhance your retirement years without returning to the workforce, or having continued mortgage payments, and/or accruing credit card debt. This source of funds can make a remarkable difference between a subsistence retirement and one that is enjoyable and free of the usual money worries.
A reverse mortgage does NOT affect pension benefits, social security or your retirement program. THE FUNDS YOU RECEIVE ARE TAX FREE: THEY ARE NOT INCOME! Funds can be used for any worthwhile purpose, such as travel, home improvements, or the purchase of a new car.
Some key benefits include:
- You can pay off your mortgage
- Reverse Mortgage funds are tax-free!
- You will continue to own your home
- Eliminates Monthly Mortgage Payments
- No monthly payments
- No up-front fees collected (you only pay for your Reverse Mortgage counseling and appraisal costs, by credit card, during the application process.)
- There are no restrictions on how the money is used
- You can repay at any time with no pre-payment penalty
- Reverse Mortgages are flexible
The older you are, the more money you can get. Eligible homes in this case include single detached homes as well as HUD-approved condominiums, PUD's and multi-family(2-4's) dwellings.
Federal mortgage insurance (MIP) is required for a Reverse Mortgage. Your other assets will never be used to pay off your Reverse Mortgage loan.