“I’ve lived in my home for over 30 years. I didn’t want to leave it and go where I don’t know the neighbors. A revere mortgage allowed me to have the security of staying in my home without a mortgage payment. That increased the money in my monthly budget. What a relief!” KS, Denver Statistics bear out the concept that aging in place is a benefit to many seniors. The ability to maintain the familiarity with the neighborhood and routine of life can reduce stress and add years.
For many seniors who are living longer, the question is, “How do I fund my longevity?” Spouses are thinking about what will happen when one of them passes away. Will the surviving spouse be able to stay in the home comfortably? The answer is often “Yes!” when a reverse mortgage has been put in place to insure there is no mortgage payment and often, a sum of money available to the surviving spouse.
The bank never owns the home and the property may be willed to the heirs. Because a reverse mortgage is FHA insured, it is a non-recourse loan. No one can “come after” the estate or your heirs. No one is “saddled” with debt because of the reverse mortgage. As a financial tool, a reverse mortgage is a wise choice in many cases providing relief from financial pressure in the near-term, and greater financial security in the long-term.
Since “not being a burden to my children” is a common theme among seniors, a reverse mortgage can remove the need to dip into savings each month to pay bills, or have the children chip-in to help with monthly expenses.
“A reverse mortgage is basically a tax-free advance on your home equity,” writes Robert Massi. “For some people, a reverse mortgage can offer financial freedom to enjoy their later years without worrying about income. For others, it can provide much needed help for staying in their homes. The money from a reverse mortgage can be used to provide help in meeting medical or caregiving expenses, or to help defray tax payments or home maintenance costs.”