No such thing- right?? WAIT! Please read on. Forwarding this info to someone you know and care about who is 62 or older, could truly benefit from this information. This could be your good deed for the day!
Do you know someone who is House rich, Cash poor? This is a common thread running through the fabric of America, not to change any time in the near future. With the economic breakdown during the past few years, many people have lost some or much of their retirement income. The retiring baby boomers and seniors are wondering how they are going to live on their current income as they age. While the average life expectancy for a male is 78 and 83 for a female, the medical world tells us that with future medicine, this will go even higher!
Here’s why a Reverse Mortgage may be right for you or someone you know…
Beginning in January 2009, the Federal Housing Authority(FHA) started insuring mortgages for seniors age 62 and older. The reverse mortgage allows the homeowner to tap into immediate equity on their current home or one that they may want to purchase in the future. Granted, there are guidelines for all of this so here it is in a nut shell..
A reverse mortgage enables conversion of home equity into cash. The owner retains title to the home until it is sold at which point the owner pays the lender back the amount owed. The remaining equity is that of the homeowner. The money can be taken in one lump sum, or scheduled payments over a period of years. This can be done in the current home or for a future home purchase.
There are different loan limits depending on age and location. Generally speaking, the older the borrower, the more money that will be available. The beauty of this program is that one may downsize from the larger home into a smaller space, taking the equity out of the new home for an additional source of income.
For additional questions, please visit .http://www.hud.gov/offices/hsg/sfh/hecm/rmtopten.cfm
Like everything in life, there are always Pros and Cons- So check it out for yourself and you decide.
June 8, 2010 at 12:14 pm
Bonnie,
This is wonderful information. It is one of those things that may not apply at this exact moment. But really great to hang on to for either yourself or a friend. When the moment is here that you need this info, you need to have a reliable source to help you through the time. You are certainly THAT person.
Thanks for sharing your great knowledge.