Supplement Income With Reverse Mortgage

A reverse mortgage is a way for seniors to still maintain ownership of their home and accept a lump sum payment or monthly payments based on the value of their home. This can look very appealing to many people but there are some things to take into consideration prior to signing on the bottom line.

• Paid off home or enough equity to barrow against
• At least 62 years old

Instructions:

Step 1

With a reverse mortgage the homeowner makes no payments. Instead they receive a lump sum payment or a monthly payment to help supplement their income. The first thing you will need to do to take advantage of a reversed mortgage is review the eligibility requirements.

Step 2

The next thing you should do is review all the fees. This service or offer for a supplemental income with a reverse mortgage sounds very appealing but you should know with all things there is a catch. You should be aware of the up-front insurance fees that are approximately 2% of the value of the home. There is also a .50% annual service fee, transaction fees, and taxes you should take into consideration.

Step 3

Take into account the income you could loose after taking a reverse mortgage to supplement your income. This is an asset and will be used when accessing your eligibility for programs like Medicaid or Social Security Income.

Step 4

If you think a reverse mortgage is right for you and your family you should speak to your financial advisor to get it set up. They will make sure you fill out all the appropriate documentation and are signed up correctly.

• Keep in mind the reverse mortgage program specifically states you must be living in the home to continue to take advantage of the benefit. If for some reason you are forced to move into a nursing home or assisted living home the loan will be due and you will be forced to repay the total amount borrowed or the market value of the home whichever is lesser.
• Interest that accrues on a reverse mortgage loan is not tax deductible.

Supplement Income With Reverse Mortgage

Reverse Mortgage Fees

Reverse Mortgage Eligibility