Reverse Mortgages Can Help Supplement Fixed Incomes
November's unemployment numbers in the United State were recently released and the news was not optimistic. The unemployment rate is still at 10 percent, down only .2 percent from October's 26-year high of 10.2 percent.
Unemployment has affected almost every person in the country in some way, but can be especially detrimental to those who, previously retired, are trying to supplement their fixed income.
Reverse mortgages can be a good way to supplement a person's income by using the equity in their home and turning it into usable funds. These loans require no monthly payment and are available to those 62 years and above who use their homes as their primary residence.
Although it is necessary to have equity to obtain a reverse mortgage, the home does not need to be owned free and clear. One of the most common uses of a reverse mortgage is to pay off the current mortgage and eliminate monthly payments.
One safeguard that a reverse mortgage offers seniors is that it requires all borrowers on the loan to go through a third-party counseling session. This counseling session with a HUD approved counselor ensures that the senior gets an unbiased opinion and gets all their questions answered.
While this loan does not require monthly payments, real estate taxes, homeowner's insurance, and home repairs are still the responsibility of the homeowner. Homeowners can receive their money in a lump sum, monthly advance, term advance, line of credit, or a combination of these.
Reverse mortgages can be greatly helpful to those people who are forced to live on a fixed income. They can help supplement a person's income and allow seniors to remain in their homes for as long as they wish with no monthly mortgage payments. For additional reverse mortgage information, contact a reputable lender today.
by: Anne Johnson