If you are quickly approaching the age of retirement, or already there, then you might want to learn more about a reverse mortgage if you are worried about your financial situation. A reverse mortgage is one a person age 62 or older may be able to obtain. This program allows you to withdraw some of your home's equity, should you come into a financial need. A reverse mortgage won't require you to pay more than the insurance, the taxes, and the money it takes to keep your home properly maintained. If all this sounds good so far, continue reading to learn more about reverse mortgages.
Money is available as you need it
Once you decide to go with a reverse mortgage, you will have options with regard to how you decide to receive the money. You can choose to get the money in one lump sum, you can get it on a monthly basis, or you can use it like a credit line. This flexibility allows you to choose the option that is going to meet your specific needs the best.
You can pay off your current mortgage
You can use the money from your reverse mortgage to pay your current mortgage off. Should you decide to go this route, there will still be a lien on the home that will be for the amount of the reverse mortgage. However, the very freeing benefit you will be able to enjoy is getting out of that monthly mortgage payment that may be weighing you down month after month.
Fees can be rolled into the reverse mortgage
While there will be fees associated with the reverse mortgage, you can opt to have those fees rolled into the reverse mortgage. This means you aren't going to have to worry about paying those up-front fees that can often become a hindrance.
Social security is normally not affected
Although you should consult with a professional to discuss your specific situation, most times social security will not be affected when you get a reverse mortgage. If it's found not to affect your social security, then you will find yourself in much better financial standing after you get your reverse mortgage approved.
Conclusion
If you have been worried lately about your finances and you are at least 62, then a reverse mortgage is something you should give some serious thought to. This type of program can be very financially freeing.
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