The Top Benefits Of Reverse Mortgages
There are many seniors today that are struggling to pay their bills and feed themselves due to the limited income they have coming in each month, yet many of these individuals own valuable homes. While owning a home is a great part of life, it does not help a person pay his or her bills. There is a way, though, that seniors can use their homes to provide themselves with income they can use to pay their bills and buy food, and this is through a reverse mortgage.
It provides income without selling the house
Many seniors could get the cash they need by selling their homes, yet many do not want to be forced to sell. If they sell, it means they have to move, and a lot of older people simply do not want to have to move out of the homes they have lived in for many years. Luckily, with a reverse mortgage, a person does not have to sell and move. Instead, the person can tap into the equity of the home as a course of cash, and this cash can provide income for the person to use in whatever ways he or she chooses. This is probably one of the most attractive things about reverse mortgages.
It offers options with how the money is disbursed
Secondly, a senior who chooses a reverse mortgage will get to choose how he or she wants the to receive the money. The person could choose a lump-sum payment, which is great for some people and some situations, or the person could choose a steady stream of payments. With this choice, the person could receive an annual lump-sum amount of money or money each months. By getting to choose this, a senior will have more control over his or her money and can choose the best option for his or her situation.
It will not increase the person's bills
Finally, a senior who takes a reverse mortgage loan will not have to make payments for this money. In other words, it is not really a loan. Instead, the person will only repay the equity he or she borrowed through the reverse mortgage when the person moves from the house. Because there are no payments to make, this option is very attractive to many seniors who live on fixed incomes.
If you are interested in finding out if you qualify for a reverse mortgage, talk to a lender about your situation today.