Reverse mortgages often give retired homeowners the opportunity to stay in their homes longer, and being able to live a bit more comfortably. For people that have worked their entire lives taking care of their families, and working hard to build a nest egg for retirement, recent changes in our economy have wiped out or greatly reduces their nest egg. Older women who find themselves widowed and with less income, or the disabled that are unable to supplement their social security income a reverse mortgage may be your answer. There are some common questions on reverse mortgages you should ask.
How long can I stay in my home, if I take out a reverse mortgage?
The answer is simple As long as you live in your home, you will receive monthly payments from the lender. A reverse mortgage is essentially a loan, that pays you the equity you have earned in your home, and more if you have longevity on your side. However, if you choose to move from the home, the debt will come due.
Can a reverse mortgage have an impact on my social security income?
The answer is yes, it could. Social security payments are effected by the additional income you earn, beginning at a specific set point. You will want to check with social security and the lender that you are working with, to determine the impact. You may need to adjust the size of the payments you receive.
What happens when I use up the equity in my home, do I have to move?
No, the lender will continue to make payments to you, as long as you live in the home. When you move or pass away, you or your beneficiaries will pay back the value of the property. This is an added benefit for baby boomers that are living longer.
You worked hard for your money, paid your bills on time and looked forward to the golden years of retirement. Then life happened and you lost your spouse, you lost your retirement savings in the declining stock market or the cost of living increased faster than your savings could accrue interest. You should not struggle day to day, worrying about how you will make ends meet or pay the bills. Now is the time to look at reverse mortgages Irvine so you can begin living again.