Running out of money is one of the scariest events a retiree can experience. But as frightening as it is most senior Americans are going through it every single day. Studies reveal that 33% of Americans do not have retirement savings, 30% over 50-year-olds do not have retirement savings, only about 31% of seniors over 65 have retirement savings of over $200,000 and about 25% of senior Americans rely on social security as their primary source of income. People are not saving more because of many factors such as college tuition payments, hefty mortgages, and short-term needs. Also, many Americans have fallen victims of stagnant wages over the years and having fewer options for saving. Pension plans are non-existent, while employers have become stingy with 401 (k) matching dollars. Worse still many low and middle-income earners work for organizations that do not offer 401(k) coverage.
So how do you maneuver through life when you are retired and running out of cash? Well, one of the active ways to ensure you do not suffer much during your retirement is by taking advantage of the senior reverse mortgage.
What is Reverse Mortgage? How does reverse mortgage work?
The question “what is reverse mortgage” and “how does reverse mortgage work?” is often asked by many seniors. A senior reverse mortgage is a merely a loan given to homeowners of over 62 years by a reverse mortgage lender, which allows them to convert a portion of equity in their homes into cash. This idea was conceived to assist retirees with low or limited income to use their homes to cover monthly necessary living expenses like paying for healthcare.
This loan is called reverse mortgage because unlike traditional mortgage the reverse mortgage lender makes payment to the retiree. Besides, the retiree is not required to pay back the loan until the home is vacated or sold.
How can reverse mortgage help?
Reverse Mortgage reviews are flexible and used by different of borrowers in a variety of ways. Retirees with financial needs can use the product to increase their finances. While retires with enough resources might use the product as a financial planning tool.
Live in your home
A reverse mortgage reviews offer you the advantage of living in your own house with no monthly mortgage payments; you can also get access to money for any purpose.
Low Risk of Default
Unlike traditional home loans, your home cannot be taken from you as a result of non-payment. You only pay when you permanently leave your house.
You will never owe more than the value of your home even if the lenders have paid you more money.
The money from reverse mortgage loan is never taxed whether you receive it as a lump sum or fixed income. You can find the reverse mortgage interest rate by using a reverse mortgage calculator. The reverse mortgage calculator is very accurate in assessing the loans and reverse mortgage interest rate.
You are not restricted on how you can use the loan. Whether you want to travel, health insurance, college fees, anything goes.
Flexible Payment Options:
You can receive the reverse mortgage loan as a lump sum, credit line or annuity depending on the type of loan you choose.
With this loan, you will still retain the ownership and even live in your home.
Reverse mortgage such as the home equity conversion mortgage, managed by the department of housing and urban affairs is federally insured. Even if your lender default you will still receive your payments.