Don't Be House-Rich & Cash-Poor!
According to Jerry Garner, a reverse mortgage consultant for Wells Fargo Home Mortgage, a growing number of seniors are looking at reverse mortgages as a way to generate tax-free income. "For people who are 62 years of age or older who need better cash flow - a reverse mortgage can make good sense."
With a reverse mortgage, there are no monthly payments to make; and no income, employment or credit qualifying restrictions when applying.
The home does not have to be totally paid off to qualify for a reverse mortgage. In fact, a common use of the reverse mortgage is the elimination of a current mortgage; the senior homeowner refinances into a reverse mortgage and eliminates their monthly payment.
Recent changes to federal laws in 2009 sllow buyers age 62 or older to use a reverse mortgage to purchase a new home.
The loan becomes due when the owner sells the home, moves and no longer uses the home as the primary place of residence or dies. Because reverse mortgages are non-recourse loans, the borrower or the estate can never owe more than the value of the home.
According to Garner, today there are more options for retired individuals and couples than ever before. It is a good time for seniors to talk to their trusted advisor to decide if a reverse mortgage is in their best interest. As baby boomers reach retirement age, reverse mortgages are expected to become even more popular with financial planners and their senior clients who are cash-poor and looking to have extra funds.
The reverse mortgage is an innovative way to respond to changing lifestyles as older Americans move into retirement.
There is no reason for a senior to be house-rich and cash-poor. Aging homeowners can turn to reverse mortgages and access the wealth they have accumulated in their houses to obtain added income and enhance their lifestyles in retirement.
By doing so, they can continue to live independently - and comfortably - right where they are and for many years to come.
Questions? You can reach Reverse Mortgage Specialist Jerry Garner at firstname.lastname@example.org
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