Need I remind anyone that most Americans are going through some very challenging times and, I fear, that 2010 will bring little relief. Unemployment is at 10% and will go higher. If we add back those that have given up finding a job or who are underemployed, that number is now 17% and, before we are out of the woods, will exceed 20%. Inflation is tame but, even at 2% to 3% annualized, it hits hard on those with fixed incomes.
Fortunately, if you are a senior homeowner with significant equity in your home, a reverse mortgage could be your answer to financial stability by converting some of that equity into spendable income. The money obtained through a reverse mortgage does not need to be repaid during the life time of the borrower, as long as the borrower continues to live in the same property.
Reverse mortgage money can be used as a source of monthly income by the senior homeowner. The added cash flow can ease tight financial budgets so seniors can have a little more breathing space and a few more dollars in their pockets. The money can also be used as a line of credit that they can draw upon when extra cash is needed. A lump sum payment is also available.
The money from a reverse mortgage can be used for any purpose the homeowner sees fit. However, I always caution my clients to be careful. This is real money and should only be used prudently and with the utmost caution.
The purpose of a reverse mortgage is to put seniors in a more comfortable position both financially and emotionally. This financial backup offers seniors peace of mind and economic stability so they can live their retirement years without the added burden of cash deficiencies.
For more information, seek advice only from experienced reverse mortgage specialists.
