Reverse Mortgage: An investment for your future
As seniors today grow into retirement, more and more are finding
that their savings and retirement plans are less and less unable
to cope with the rising cost of medical services, inflation, and
the burden of unforeseen emergencies. More and more seniors have
to cash in annuities, investments, and take out high payment
equity loans just to make ends meet. With this, the threat of
bankruptcy and financial ruin are becoming more and more a
reality for the everyday senior. One way to avoid all of these
problems is with a Reverse Mortgage.
A Reverse Mortgage is a government sponsored program that has
been federally regulated and insured by the Department of
Housing and Urban Development as a way for seniors to maximize
their financial situation with no risk to senior's investment
base or net wealth. What a Reverse Mortgage is designed for is
to allow a senior to utilize the most common form of wealth, the
equity in the home, to safely provide a large amount of funds. A
Reverse Mortgage allows for a senior to generally receive
anywhere of 30-60% of the home's value, tax-free, and with no
payment obligation. A senior is never required to pay back a
Reverse Mortgage for as long as they live in their home.
The Reverse Mortgage will provide a lump sum, a monthly annuity
payment, or a line of credit for the senior, or a variety of
extremely flexible combinations. There are no restrictions on
how the money can be used, and all of the funds are not included
in an income tax assessment and they do not affect social
security or Medicare benefits whatsoever. The entire program,
including debt management and interest rate of the loan, is
regulated by the Federal government to increase the safety for
the senior, and because there are no payments or fees required
during the life of the loan, there is never a chance for default
or foreclosure on the home. The Reverse Mortgage has been
designed to let allow the senior to use the accumulated wealth
of the home, without having to sell the home, put their home at
risk, or add to their monthly burden with a large immediate
repayment.
The Reverse Mortgage is also commonly used as a means for
seniors, who may not find themselves in financial difficulty, as
a source of investment capitol. The investment marketplace of
today has never been a creative or diverse and more seniors that
ever are looking for a way to utilize some of these very
productive investment vehicles, but are struggling to find the
money. Cashing in a savings bond/stock/mutual fund/401k or
having to do a 1035 exchange are normally the only means of
finding the funds for a new investment, but with the Reverse
Mortgage, a senior can make available a large amount of tax-free
funds, without adding a monthly payment burden, and use the
money for a large variety of undertakings. Besides investment,
seniors use the funds from a Reverse Mortgage for long-term care
or insurance policies, tax-free gifts for charities or for
grandchildren's futures, or to begin the distribution of their
estate today instead of down the road when they will have less
control of their legacies.
A Reverse Mortgage is another means for many seniors to maximize
their financial situation while keeping their home safe from
financial trouble and unfair or unscrupulous situations. The
design of the program, the benefits of the funds, and the ease
of acquiring one, has made the Reverse Mortgage one of the
fast-growing senior financial ventures in America.