The New Retirement Plan That Banks Don’t Want Seniors Knowing
You may be surprised to find out how much money seniors can receive through a Reverse Mortgage.
Still unknown to many, this brilliant retirement method is helping senior citizens across the country by eliminating their monthly mortgage payments and putting cash in their bank account through what’s called a “Reverse Mortgage Loan”. You can bet that your current mortgage holder might not be too thrilled about this, since they would be losing your business.
So while your mortgage holder may secretly hope you don’t find out about how a Reverse Mortgage works, an innovative online tool has been setup to educate homeowners about Reverse Mortgage loans and how much you are eligible to receive. If eliminating your monthly mortgage payments, generating additional retirement cash, all while being able to live in your home during your lifetime sound good to you, it may be better to act now while it is still on your mind.
Millions of seniors across the country are in financial stress with high mortgage payments and other medical bills. Many are unable to work, while they are in need of extra retirement income. A Reverse Mortgage loan is often a great solution to eliminate your monthly mortgage payments and generate retirement cash.
What Exactly is a Reverse Mortgage and How Does it Work?
A reverse mortgage is essentially a loan. You are borrowing against your home equity. You can get a lump sum amount, line of credit or get monthly checks. However, unlike traditional mortgages, with a reverse mortgage, you do not have to pay back the money you have borrowed as long as you are living in the home.
Reverse Mortgages are ideal for you if:
- You’d like to eliminate your monthly mortgage payment, or if you struggle with bills every month. Could you use an extra $600-$1500 per month?
- You plan to stay in your home for the rest of your life.
- You could use the extra money that it provides you.
- You are 62 years or older and have 50% or more equity in your home.
Downsides of a Reverse Mortgage
Although a Reverse Mortgage sounds like a no-brainer, there are many things to consider when exploring this retirement method. Here are a few:
Interest: Since a reverse mortgage is a loan, it does accumulate interest. But there are no monthly payments due on a reverse mortgage. So the amount you will eventually have to pay back does grow larger over time, but the loan isn’t due until you decide to sell your home or when both you and your spouse have died. (To avoid foreclosure, borrowers must keep property taxes & insurance paid up and keep the property in good repair.) The loan repayment amount will never exceed the value of your home.
Estate Value: Your estate value may lower over time. Something to take into consideration if you plan to leave your assets to children.
Not Enough Cash Can Be Tapped: If you have a lot of home equity, you might be frustrated that a Reverse Mortgage only enables you to use some of it. The HECM loan rules will evaluate your equity using a maximum home value of $726,525, even if your home is worth more. However, your actual loan amount is determined by a calculation that uses the appraised value of your home, the amount of money you owe on the home, your age, and current interest rates.
Complicated: To many, Reverse Mortgage loans are somewhat complicated. Luckily, NewRetirement has setup an innovative online tool to help homeowners find out if it’s right for them and how much they can receive.
Where Do I Start?
With hundreds of Reverse Mortgage lenders and brokers available, it can take consumers hours to simply contact each one separately and request a quote. The good news is that there are services that will connect you with the best lender for you. One such service is NewRetirement, who can help you fully understand how a Reverse Mortgage works and also calculate how much money you can get with their innovative online tool.
If you would like more information on how a Reverse Mortgage works or if you’d like to calculate your loan amount you’ll want to take this reverse mortgage suitability test. It takes about five minutes, and the service is 100% free. You have nothing to lose, except for your money problems!
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