SlideShare a Scribd company logo
1 of 1
Download to read offline
Reverse Mortgages For Seniors

For those people who are over 60 years of age and own their own home free and clear
a reverse mortgage is one way for you to make use of your home’s equity to get
yourself some cash when and if you need it. Basically it’s a loan that uses a part of the
home’s equity as collateral and where you can get the principal amount either as a lump
sum or as revolving line of credit or as a monthly payout for a set number of years.

The title of the home is still with the owner. This means that you can do with it as you
wish – like selling it if you want to. It’s just that the home will simply be encumbered by
the amount of the reverse mortgage.

There is no required monthly payment. In fact it is the lender who will pay you
depending on the payment option you choose as mentioned above. Instead, the interest
and fees, along with the principal amount simply accrues and once the home gets sold
or the owner moves or passes away that’s the time the lender gets paid.

With such a loan you will be able to enjoy a nice retirement free from the worries of
financial instability and be able to live the way you want comfortably. Getting one is
easy since the home’s equity is all that matters.

However, there are downsides to this. It is still a loan. This means the home will be
encumbered by this which can affect the amount of money you will be able to get if you
do plan to sell it. Same is true if you pass away – your heirs will be encumbered by this
should they get the home.

Then there are the fees and interest rates. Do be careful so you don’t get tricked into
higher interests rates and fees that go through the roof. Unfortunately, there are
unscrupulous brokers out there who are in it for the commission so it’s best you be
informed before going for something like this.


Mortgage information comes from Deborah Koval.

More Related Content

Recently uploaded

What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI360factors
 
2024-3-29 - PR Newswire - Federal Judge Says BP Must Reform its Pension Plan.pdf
2024-3-29 - PR Newswire - Federal Judge Says BP Must Reform its Pension Plan.pdf2024-3-29 - PR Newswire - Federal Judge Says BP Must Reform its Pension Plan.pdf
2024-3-29 - PR Newswire - Federal Judge Says BP Must Reform its Pension Plan.pdfHenry Tapper
 
A STUDY ON ANALYSIS OF LOANS AND ADVANCES IN HDFC BANK.docx
A STUDY ON ANALYSIS OF LOANS AND ADVANCES IN HDFC BANK.docxA STUDY ON ANALYSIS OF LOANS AND ADVANCES IN HDFC BANK.docx
A STUDY ON ANALYSIS OF LOANS AND ADVANCES IN HDFC BANK.docxRajuKHalgye3
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources PresentationAdnet Communications
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfAdnet Communications
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...mwangimwangi222
 
ACADEMIC BANK OF CREDIT: A WORLDWIDE VIEWPOINT
ACADEMIC BANK OF CREDIT: A WORLDWIDE VIEWPOINTACADEMIC BANK OF CREDIT: A WORLDWIDE VIEWPOINT
ACADEMIC BANK OF CREDIT: A WORLDWIDE VIEWPOINTindexPub
 
JD ED Strategy Policy and Analysis. TPrpdf
JD ED Strategy Policy and Analysis. TPrpdfJD ED Strategy Policy and Analysis. TPrpdf
JD ED Strategy Policy and Analysis. TPrpdfHenry Tapper
 
Pitch Ogloba Feb 2nd 2024 .pptx
Pitch Ogloba Feb 2nd 2024           .pptxPitch Ogloba Feb 2nd 2024           .pptx
Pitch Ogloba Feb 2nd 2024 .pptxFinTech Belgium
 
IMPACT OF MICROFINANCE ON POVERTY REDUCTION IN SOUTHERN PUNJAB PAKISTAN
IMPACT OF MICROFINANCE ON POVERTY REDUCTION IN SOUTHERN PUNJAB PAKISTANIMPACT OF MICROFINANCE ON POVERTY REDUCTION IN SOUTHERN PUNJAB PAKISTAN
IMPACT OF MICROFINANCE ON POVERTY REDUCTION IN SOUTHERN PUNJAB PAKISTANindexPub
 
Press release from the BP Pensioner Group on the WPC DB report
Press release from the BP Pensioner Group on the WPC DB reportPress release from the BP Pensioner Group on the WPC DB report
Press release from the BP Pensioner Group on the WPC DB reportHenry Tapper
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdfAdnet Communications
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingHenry Tapper
 
CLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfCLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfSCBEICSCB
 
The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024Neil Day
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...Antonis Zairis
 
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMZakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMFaisal834049
 

Recently uploaded (20)

What Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AIWhat Key Factors Should Risk Officers Consider When Using Generative AI
What Key Factors Should Risk Officers Consider When Using Generative AI
 
E-levy and Merchant Payment Exemption in Ghana
E-levy and Merchant Payment Exemption in GhanaE-levy and Merchant Payment Exemption in Ghana
E-levy and Merchant Payment Exemption in Ghana
 
2024-3-29 - PR Newswire - Federal Judge Says BP Must Reform its Pension Plan.pdf
2024-3-29 - PR Newswire - Federal Judge Says BP Must Reform its Pension Plan.pdf2024-3-29 - PR Newswire - Federal Judge Says BP Must Reform its Pension Plan.pdf
2024-3-29 - PR Newswire - Federal Judge Says BP Must Reform its Pension Plan.pdf
 
A STUDY ON ANALYSIS OF LOANS AND ADVANCES IN HDFC BANK.docx
A STUDY ON ANALYSIS OF LOANS AND ADVANCES IN HDFC BANK.docxA STUDY ON ANALYSIS OF LOANS AND ADVANCES IN HDFC BANK.docx
A STUDY ON ANALYSIS OF LOANS AND ADVANCES IN HDFC BANK.docx
 
Digital Financial Services Taxation in Africa
Digital Financial Services Taxation in AfricaDigital Financial Services Taxation in Africa
Digital Financial Services Taxation in Africa
 
2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation2024.03 Strategic Resources Presentation
2024.03 Strategic Resources Presentation
 
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdfLundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
Lundin Gold March 2024 Corporate Presentation - PDAC v1.pdf
 
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...Solution manual for  Intermediate Accounting, 11th Edition by David Spiceland...
Solution manual for Intermediate Accounting, 11th Edition by David Spiceland...
 
ACADEMIC BANK OF CREDIT: A WORLDWIDE VIEWPOINT
ACADEMIC BANK OF CREDIT: A WORLDWIDE VIEWPOINTACADEMIC BANK OF CREDIT: A WORLDWIDE VIEWPOINT
ACADEMIC BANK OF CREDIT: A WORLDWIDE VIEWPOINT
 
JD ED Strategy Policy and Analysis. TPrpdf
JD ED Strategy Policy and Analysis. TPrpdfJD ED Strategy Policy and Analysis. TPrpdf
JD ED Strategy Policy and Analysis. TPrpdf
 
Pitch Ogloba Feb 2nd 2024 .pptx
Pitch Ogloba Feb 2nd 2024           .pptxPitch Ogloba Feb 2nd 2024           .pptx
Pitch Ogloba Feb 2nd 2024 .pptx
 
IMPACT OF MICROFINANCE ON POVERTY REDUCTION IN SOUTHERN PUNJAB PAKISTAN
IMPACT OF MICROFINANCE ON POVERTY REDUCTION IN SOUTHERN PUNJAB PAKISTANIMPACT OF MICROFINANCE ON POVERTY REDUCTION IN SOUTHERN PUNJAB PAKISTAN
IMPACT OF MICROFINANCE ON POVERTY REDUCTION IN SOUTHERN PUNJAB PAKISTAN
 
Press release from the BP Pensioner Group on the WPC DB report
Press release from the BP Pensioner Group on the WPC DB reportPress release from the BP Pensioner Group on the WPC DB report
Press release from the BP Pensioner Group on the WPC DB report
 
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
20240314 Calibre March 2024 Investor Presentation (FINAL).pdf
 
Work and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB fundingWork and Pensions report into UK corporate DB funding
Work and Pensions report into UK corporate DB funding
 
Mobile Money Taxes: Knowledge, Perceptions and Politics: The Case of Ghana
Mobile Money Taxes: Knowledge, Perceptions and Politics: The Case of GhanaMobile Money Taxes: Knowledge, Perceptions and Politics: The Case of Ghana
Mobile Money Taxes: Knowledge, Perceptions and Politics: The Case of Ghana
 
CLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdfCLMV-Outlook-March-2024-ENG-20240327.pdf
CLMV-Outlook-March-2024-ENG-20240327.pdf
 
The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024The CBR Covered Bond Investor Roundtable 2024
The CBR Covered Bond Investor Roundtable 2024
 
The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...The unequal battle of inflation and the appropriate sustainable solution | Eu...
The unequal battle of inflation and the appropriate sustainable solution | Eu...
 
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAMZakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
Zakat and it’s Social Benefits - THE FORGOTTEN PILLAR OF ISLAM
 

Reverse mortgages for seniors

  • 1. Reverse Mortgages For Seniors For those people who are over 60 years of age and own their own home free and clear a reverse mortgage is one way for you to make use of your home’s equity to get yourself some cash when and if you need it. Basically it’s a loan that uses a part of the home’s equity as collateral and where you can get the principal amount either as a lump sum or as revolving line of credit or as a monthly payout for a set number of years. The title of the home is still with the owner. This means that you can do with it as you wish – like selling it if you want to. It’s just that the home will simply be encumbered by the amount of the reverse mortgage. There is no required monthly payment. In fact it is the lender who will pay you depending on the payment option you choose as mentioned above. Instead, the interest and fees, along with the principal amount simply accrues and once the home gets sold or the owner moves or passes away that’s the time the lender gets paid. With such a loan you will be able to enjoy a nice retirement free from the worries of financial instability and be able to live the way you want comfortably. Getting one is easy since the home’s equity is all that matters. However, there are downsides to this. It is still a loan. This means the home will be encumbered by this which can affect the amount of money you will be able to get if you do plan to sell it. Same is true if you pass away – your heirs will be encumbered by this should they get the home. Then there are the fees and interest rates. Do be careful so you don’t get tricked into higher interests rates and fees that go through the roof. Unfortunately, there are unscrupulous brokers out there who are in it for the commission so it’s best you be informed before going for something like this. Mortgage information comes from Deborah Koval.