What is a Reverse Mortgage?
Many Americans facing retirement would love to increase their monthly income.
Fortunately, there is a way that homeowners can use their homes to help finance their retirement — to turn the value of their property into usable cash without the emotional trauma of having to sell and move.
A reverse mortgage turns the value of your home equity into usable cash, which you can use to supplement your income, finance home improvements, pay medical bills or debts, or even fund a family member’s college education. Instead of you making monthly mortgage payments, the lender pays you in the form of fixed monthly payments for the rest of your life, or as a lump sum or a line of credit that can be tapped when needed (up to a certain limit). The income you receive is generally tax-free and doesn’t affect your Social Security and Medicare benefits.
To be eligible for most reverse mortgages, you must be age 62 or older and the home must be your principal residence. Even though this is a home loan, you don’t have to repay the principal, interest, and fees for as long as you (and usually your surviving spouse) continue living in the home or the property is sold.
Make it a great day!
Otto Alcon Branch Manager State of Michigan Geneva Financial LLC