Tag Archives: reverse mortgages

Author Sue White Posted on

Can Reverse Mortgages Provide Seniors With A Retirement Income?

reverse mortagesThose with fixed resources tend to overlook the possibility of tapping the equity of their home. With the home equity that seniors can access, reverse mortgages must be taken into account when developing a retirement funding plan.

A reverse mortgage is commonly referred to as a last resort loan for seniors. It’s an option for those who’ve got no other alternatives when under financial stress. They could serve as a part of a comprehensive retirement plan for retirees to think about and for financial consultants to explore.

Seniors have different situations and needs. A reverse mortgage loan offers an annuity type payment or to get rid of a current mortgage. They both help boost household cash flow. The extra income could be used for in-home care, pay for expenses, and other long term needs. A reverse mortgage can also have a retirement income that is kept at a level wherein their assets aren’t depleted.

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Author Sue White Posted on

Reverse Mortgages: Common Myths Debunked

reverse mortgageThere are a lot of misconceptions about the terms associated with reverse mortgages. Even with the recommendations provided by the American Association of Retired Persons (AARP), a lot of seniors still worry. Their concerns come from applying for a reverse mortgage loan. Things become worse when their loved ones or friends say that this type of loan is nothing but bad news. Even though they can’t provide any credible information to back up their claim.

Common Myths About Reverse Mortgages

There are many misconceptions regarding a reverse mortgage. One example is that it tends to result into houses being repossessed from the borrowers. This isn’t true. As a matter of fact, the senior borrower would still own the house that’s under the loan program. This ownership is protected by the lien that’s put on the property, just like other types of mortgages. It will guarantee that the lender will be repaid for the owed amount, getting rid of the threat of having the house repossessed.

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