Anyone that is looking for an extra income stream during their retirement years should consider a reverse home mortgage. It is a great way to have a steady income to pay for your expenses and as long as you are the owner of the home it can not be taken away from you if you have a reverse home mortgage.
Your Home Can Still Be Left to Heirs
Many people think that a reverse home mortgage is not for them. They believe that if they get money from this loan that they cannot leave it to their heirs. This is not true. You can still leave the house to your heirs. They will have one year from your death to settle the loan. They will need to refinance the house to become the owner.
You Retain Ownership to Your Home
If you outlive the incoming payments from your reverse home mortgage you will not be forced to leave. This is one of the best benefits of this type of loan. In essence you get to have your cake and eat it too. Where else can you sell your home but still maintain residence? You definitely can’t do that with an auto loan. As loan as you still hold the deed to your home you can still live there.
No Possibility of Foreclosure
You will not have to worry about foreclosure as you will not be making any payments on the home. The bank will make payments to you! This is a type of annuity payment except this is from the appraisal value of your home. The current 2009 maximum value is $625,000. The best part is that it is free and clear from all taxes. If you were to sell your home then you would be subject to a capital gains tax and after your real estate broker fees and closing costs if you contributed any towards the buyer, and any funds needed to renovate and redecorate the house you would be out a lot of money.
If you want a steady stream of income, don’t plan on moving from your residence, own your home free of any outstanding loans, and are over the age of 62 you should seriously consider getting a reverse home mortgage. You will have the benefit of living in your home tax free without worrying about whether or not your home can be taken away from you if you have a reverse home mortgage.
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