Archive for October, 2004
Reverse Mortgages – A Brief Summary
A reverse mortgage may be one of the best-kept secrets in the world of retirement financing. For senior homeowners, 62+ years old, these easy-to-qualify-for, low-interest rate loans offer the opportunity to tap into some of the unexpectedly large accumulation of equity that has built up in their property. Reverse mortgage programs allow seniors to withdraw money, tax-free, without relinquishing title to the property, and without requiring a mandatory monthly repayment. These funds can be received as a lump-sum, a line of credit, a monthly payment, or any combination of these options. In the end, the senior homeowner has benefited from living out their lives in their home for as long as they are able without financial worry.
Reverse Mortgages – As a Financial Planning Tool
Reverse mortgage programs are designed for homeowners 62+ years old. These easy-to-qualify-for, low-interest rate, loans offer the opportunity to tap into some of the unexpectedly large accumulation of equity that has built up in their property. Monies withdrawn are tax-free and can be used for any purpose the homeowner wishes. Examples range from buying a vacation or investment property, to gifting funds to children and/or grandchildren, to establishing trusts, to purchasing long-term care insurance and/or life insurance. The funds from a reverse mortgage can be used to strengthen the financial future of the senior homeowner.
Reverse Mortgages – Using Your Home to Protect Your Home
One of the greatest fears senior homeowners have today is that of losing their home due to the costs of extended medical care treatment. For seniors who can qualify for long-term care insurance, the costs of these insurance premiums is money well spent. While long-term care premium costs may look expensive if paid out of pocket, these same costs are tiny when compared to the value of a typical home. Senior homeowners, 62+ years old, can access some of this equity through easy-to-qualify-for, low-interest rate reverse mortgage loans and tap into some of the unexpectedly large accumulation of equity that has built up in their property. In 2003, The National Council on Aging (NCOA) began a program called Use Your Home to Stay at Home™ to promote the increase in the appropriate use of reverse mortgages so that millions of homeowners can tap home equity to pay for long-term care services or insurance.