Generate Income With a Reverse Mortgage

10/28/2008

posted by N. Sioris

Stumble It!

Many retirees are experiencing the unexpected as a result of the current stock market volatility and overall financial meltdown. As the economy continues to tumble, many senior citizens are finding that the supplemental investment income they depend on is shrinking, and in many cases, so is the principal in those investment accounts.

Conventional wisdom says it would be inadvisable to liquidate asset accounts during such a period of turbulence. But if you are unable to make ends meet you may be considering such a move.

However, for retirees that have substantial equity in their homes, a reverse mortgage could be an option worth considering. A reverse mortgage can provide monthly supplemental tax-free income. Or a reverse mortgage loan can be paid out to the homeowner in a cash lump sum, a line of credit that earns interest on the unused amount, or a combination of these options.

There are no credit or income qualifications for a reverse mortgage loan and the loan does not have to be repaid until the last homeowner permanently leaves the home. The only requirements are that the homeowner continue to maintain the property, pay the real estate taxes and the homeowners insurance.


Higher Loan Limits Mean More Money For Many

Recently the loan limit for FHA insured reverse mortgages has been increased to a national limit of $417,000. With this change, many senior homeowners will be eligible to receive a much larger amount of money from their home equity through the use of a reverse mortgage. This increase has come at a perfect time for many older Americans that are suffering from stock market and investment loses during this current crisis.

So, if you are in your retirement years and the stock market plunge has taken a toll on your bank account and monthly income, a reverse mortgage might help ease your financial stress.

Try our reverse mortgage calculator tool here, and find out how much money you might be eligible for.

After you see the results, please feel free to request your personal reverse mortgage benefit summary that shows the various ways you can receive your money and the interest growth rate, if you choose the line of credit option. Click here for your reverse mortgage quote.