Benefits of Reverse Mortgages – Mortgage Payments Optional®
Reverse mortgage programs have been rapidly growing in popularity in recent years, and today hundreds of thousands of homeowners are using reverse mortgages to improve their quality of life for their retirement years. After a rough few years in the financial markets, many seniors are now concerned about how they will be able to fulfill their financial obligations, travel, and enjoy their retirement. Reverse mortgages can help homeowners convert a portion of their equity into an income stream without having to sell their property, give up title, or make monthly mortgage payments for the rest of their lives. Plus, the income earned with a reverse home mortgage is completely tax-free*.
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Potential Benefits of Reverse Mortgages**:
- No monthly payments and no repayment is required until all borrowers are no longer using their property as their primary residence, all parties on the deed pass away, or they fail to pay their property taxes and homeowners insurance.
- Tax free monthly income*
- Payments can be used for whatever the borrower wants, including home renovations, consolidating debt, paying for medical expenses and insurance costs, and traveling and other leisure activities
- Reverse mortgages provide a tool that allows seniors to tap into the equity they have in their homes. There are no income or minimum credit score qualifications. In today’s tightening credit markets, reverse mortgage products may be one of the best solutions available to most retired homeowners.
- Possibly the greatest benefit of all, reverse mortgage programs may help seniors remain in their homes that they have worked so hard to pay for throughout their lives.
- A reverse mortgage is what we call a non-recourse loan. This means that with a reverse mortgage you are not personally liable. The liability is only to the extent of the value of your home at time of sale, death or vacating the premises as your permanent residence. You are not liable nor are your heirs personally liable; they can either sell the home at time of your death or keep the home and pay off the remaining balance of the reverse mortgage
Talk to a reverse mortgage professional to learn more about some of the benefits of reverse mortgages and to see if one is right for your financial needs.
- Be sure to check out our page which weighs a reverse mortgage versus a traditional home equity line of credit (HELOC).
- Also, learn how borrowers can use funds for a reverse mortgage to help pay for assisted living and/or nursing home care.
Related Topic: So, there are no monthly payment obligations? Not exactly.
Learn More About H4P Reverse Mortgage to Build or Buy Your Dream Home
Please keep in mind that the reverse mortgage industry in constantly changing and some of the information contained on this site may not be current. Please ask a licensed reverse mortgage professional for up-to-date guidelines.
*Consult a financial tax professional for details.
**Loan benefits and parameters are subject to change. Consult with a mortgage professional for up-to-date information.