Reverse Mortgages Can Tap Equity for Retirement
Wednesday February 28, 2007
Retirement isn't the only reason to get a reverse mortgage. Some home owners take out reverse mortgages to pay off debt, make repairs or go on vacation. But the most common reason to consider taking out a
reverse mortgage is to supplement retirement income.If you have enough equity in your home and are over the age of 62, you can probably qualify for a reverse mortgage. You don't even need to own your home free and clear of any mortgages. Plus, the lender will pay you a set monthly payment for as long as you live in your home.
The fees to obtain a reverse mortgage are high compared to those for other types of loans. And it's possible that upon your death, there will be no equity left for your heirs. But it's a good solution for many home owners who need to increase monthly cash flow.
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Comments
Reverse Mortgages disturb the hell out of me. I know of people whose parents openly talk about getting these things and riding cruise ships until all the money is gone.
I think this is a great idea. People are living longer than ever before and unfortunately many people do not plan properly for retirement. This is a way for home owners to use the rapid increase in their home to their advantage. Retirement is no time to worry about money.
What’s wrong with parents riding the cruise ships until all the money is gone? It’s THEIR money, Athol. Can’t they do what they want with their own money? I say more power to them!