The Benefits of a Reverse Mortgage
Reverse mortgages are a great way for seniors to be able to access and enjoy the equity they have built up in their homes over the years. They can be an important financial planning tool for retirement, and there are a number of important benefits of reverse mortgage. Below, we will explain five of the top benefits of reverse mortgage for seniors.
To learn more information about the benefits of reverse mortgage and for more information on reverse mortgage requirements, call one of our reverse mortgage experts at Citizens Lending Group today at (800) 480-6828 or use our convenient online contact form.
Top Reverse Mortgage Benefits
You Retain Ownership of Your Home
One of the lesser known benefits of reverse mortgage is that you retain ownership of your home as long as you comply with the terms of the loan and pay any applicable taxes, fees, and insurance. The lender does not take ownership of the home as long as these qualifications are met and the homeowner remains in the home.
No Monthly Mortgage Payments Required
One of the most attractive benefits of reverse mortgage is that there are no monthly mortgage payments associated with the loan. Rather, payments on the loan are not due as long as you live in the home and the loan is in good standing. This is unlike a traditional mortgage or home equity line of credit ("HELOC") where borrowers must make regular payments throughout the life of the loan.
Protection Against Depreciation
Reverse mortgages are insured by the federal government, which provides security against adverse market conditions. One of the security benefits of reverse mortgage is that federal insurance protects your home against declines in the housing market in general and against depreciation of your home in particular. This means that if the loan ends up amounting to more than the value of the home when the home is sold, the government insurance will cover the difference. The loan will be paid in full using only the proceeds from the house sale, no more. This security benefit of reverse mortgage is unique and protects seniors or their family members from out-of-pocket expenses at the end of the loan.
Various Disbursement Options
One of the benefits of reverse mortgage is its flexibility. Every senior is different, and has different financial needs. Funds from reverse mortgages can be disbursed in several different ways: in a lump sum, in monthly payments, as a line of credit, or in a combination of these ways.
Medicare and Social Security Benefits Are Unaffected
Federal programs that are not means-tested, such as Social Security and Medicare, are not affected by reverse mortgages. It is one of the financial benefits of reverse mortgage that the disbursements are considered loan proceeds and not income. However, it is important to keep in mind that programs that are means-tested, such as Medicaid, may be affected by the loan disbursements.
Need More Information About the Benefits of Reverse Mortgage?
If you need help understanding the benefits of reverse mortgages, a friendly representative from Citizens Lending Group is here to provide you with more information. Call us at (800) 480-6828 for more information about the benefits of reverse mortgages, or use our convenient online contact form to find out if you meet the reverse mortgage requirements.