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Reverse Mortgage for the Elderly
Posted 2/19/2010 @ 2:28:42 pm by reverseages.com
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A reverse mortgage means that you can take a portion of the equity from your house to pay for nursing care, bills, or a vacation. To be prudent, many advise not spending the money on a vacation. When you are on a fixed income it is better to save your money.
If you want to cash in your equity, wait until real estate has gone up in value. You’ll want the appraised amount of your house to be as high as possible in order to get the most equity. The amount of equity that you can take depends upon your age, the current interest rate, and the ceiling amount set by FHA HUD. From the equity, you can get monthly payments to live on for the rest of your life.
The catch is that you have to live in your house. If you become disabled and need to move to a nursing home, then you have to pay back the loan with interest. However, when you stay in your house until you die, then the bank gets the house, and the loan need not get paid back.
To be eligible for a reverse mortgage, you have to be at least 62 years old, and own your home or have a low balance due on the mortgage.
You do not need to spend your money on an estate planner to find an FHA-approved lender. The FHA will provide for you for free a list of FHA-approved lenders. You can search online or call (800) 569-4287. To join a social network where seniors support seniors, go to http://www.retiredseniorsnetwork.com/blog
