Did you know that there’s a better way for you to pay your medical expenses during retirement? For Older Americans, paying healthcare has been a huge issue. The cost of healthcare continues to rise. Financial experts say that the cost of an average couple aged 65 is between $260,000 to $565,000. But gladly, you can have a better medical care plan with this reverse-mortgage. In this article, we are going to talk about what is the senior reverse mortgage. Why do we need it? And what are its benefits? First, What is the meaning of Reverse Mortgage? A senior reverse mortgage is a type of loan. To be more exact, it is a home equity loan. It is available to people who are 62 years old and above. This type of loan enables older people to convert their home equity into incomes. Homeowners typically don’t have to pay back the money during their lifetimes. But the catch is their heirs will be restricted to inherit their homes. And there are also some drawbacks. If you plan to move, consider your house sold. Also, you have to pay the lender back. But don’t worry. The rules will still be applicable as long as you comply with all of the lender’s terms.
Why Do I Need It?
Seniors often learn that even the best retirement plans cannot suffice for what they need. In truth, the average net worth of seniors aged 65-70 is twice as the average net worth of people 75 and older. The most effective buffer for old age poverty is a pension. Yet only one in six workers has one. Having Medicare, Medicaid, or private insurance is good when paying hospital bills. But the thing is, there are many more expenses to pay. Like copay’s, therapy and supplies. So what are the benefits of you having a reverse mortgage? What Are The Advantages? It does not only cover your medical expenses. There’s a lot more to it. This type of loan converts your home equity into cash right? Well, you can basically do anything you want with that cash. That’s the advantage. There is no restriction on how the money is used. A senior reverse mortgage does not also affect Medicare benefits and regular social security. But keep in mind that if you are in Medicaid, the money that you get has to be immediately used. You can get this type of loan without giving up the titles of your home. You don’t have to pay a single dime. This is loan is great to be a source of funds. As Tobe Lynn Gerard, a certified long-term care specialist use to say, “It is a great or better way to pay for long-term care, and your plan may well work.” But how can I get one? How To Apply? According to HUD, for you to apply, you must be 62 and above. You must own the property. You must occupy the house as your primary residence. No federal debt. Has to have the financial backing to pay insurance, homeowners association fees, and property taxes.
Having this type of loan can help you big time in your expenses. This type of mortgage is great if you have no one to pass your house to. We are not getting any younger. Take a chance. All we want now is for our lives to be more fulfilled and worry-free.