Skip to content

Find security, control in retirement

February 8, 2011

MN senior couple who benefited from reverse mortgageIn retirement, top priorities are often estate planning, protecting investments and traveling. But large monthly home payments, high interest rates, foreclosures, home repairs and medical expenses can make doing those things difficult.

A solution to finance retirement, no matter one’s circumstances, may be a reverse mortgage.

A mortgage with special terms for homeowners 62 and older, a reverse mortgage has no income or credit score qualifications, and no monthly payment requirements, which offer many advantages for senior homeowners.

Recently, I worked with a couple in their 70s that needed some additional funds for home repairs, including a new energy efficient furnace. Anticipating future medical expenses, they liked that through a reverse mortgage they could get money for their immediate needs, eliminate their mortgage payment and still have funds for their future needs with a growing line of credit.

In a reverse mortgage, a homeowner still owns their home. Those who enter a reverse mortgage continue to be responsible for their taxes, homeowners insurance and maintenance of the property.

In a standard mortgage, homeowners have access to cash from the equity of their home, and also, when the home is sold any remaining equity goes to them or their estate.

In a reverse mortgage, residents also can borrow cash from the equity of their home, and often at interest rates lower than they would qualify for on a regular loan. They do not have to repay that loan until the home is no longer their primary residence.

When the resident is no longer living in the home, if there is any remaining equity, they will receive it just as in a standard mortgage. But if their loan balance is higher than the home can be sold for, there is no liability to them or their estate as long as they do not retain ownership of the home.

Generally, funds received through a reverse mortgage are considered tax-free (one should consult a tax advisor for their individual situation). Social Security and Medicare are also not affected and Medical Assistance and other public benefits can still be received.

Used reverse mortgage to vacation with daughterA single woman I worked with appreciated that the reverse mortgage was explained to her and her children so they could all understand the details.  With no restrictions on how the funds are used, after doing the reverse mortgage she got new windows and siding as well as took a vacation with her daughter.

Another couple I recently helped used their reverse mortgage to pay off their current mortgage and eliminate monthly payments. Not having to make payments, the husband was able to retire – a much awaited and deserved event at the age of 70.

A reverse mortgage has allowed thousands of Minnesota seniors to remain in their home with security, independence dignity and control no matter what their circumstances.

*** Written by Beth Paterson, MLO #342859, as Guest Colomist in The Edina Sun Current, Edina, MN Thursday, Feb. 3, 2011 www.minnlocal.com Sun Newspapers

© 2011 Beth Paterson https://bethsreversemortgageblog.wordpress.com 651-762-9648

REPOSTING ALL OR ANY PORTION OF POST PERMITTED WITH LINK, CONTACT INFORMATION AND COPYRIGHT ABOVE!

Related articles:

Advertisements
16 Comments leave one →

Trackbacks

  1. It May Be To Your Advantage To Do A Reverse Mortgage Now « Beth's Reverse Mortgage Blog
  2. “Own Your Future Minnesota” Campaign Launched – How are you personally preparing for your long-term care needs? « Beth's Reverse Mortgage Blog
  3. FHA Lending Limit for Reverse Mortgages Extended « Beth's Reverse Mortgage Blog
  4. Reverse Mortgage Protects Retirement Plan « Beth's Reverse Mortgage Blog
  5. You’ve Decided To Do A Reverse Mortgage… Should You Do The HECM Standard or the HECM Saver? | Beth's Reverse Mortgage Blog
  6. Change Is Inevitable and They Are Coming To Reverse Mortgages Soon | Beth's Reverse Mortgage Blog
  7. Changes Are Inevitable and They Are Coming To Reverse Mortgages Soon | Beth's Reverse Mortgage Blog
  8. Veterans Who Have Served Our Country Have Found The Reverse Mortgage Has Served Their Needs | Beth's Reverse Mortgage Blog
  9. Without The Reverse Mortgage Money I Would Have Been “Up The Creek Without A Paddle.” | Beth's Reverse Mortgage Blog
  10. Think you don’t need a reverse mortgage? Think again… Maybe you’ll WANT one. | Beth's Reverse Mortgage Blog
  11. Know a Senior Who Wants Security, Independence, Dignity, and Control? A Reverse Mortgage May Be The Answer! | Beth's Reverse Mortgage Blog
  12. Reverse Mortgages Provide Security, Independence, Dignity And Control | Beth's Reverse Mortgage Blog
  13. Think you don’t need a reverse mortgage? Think again… Maybe you’ll WANT one. | Minnesota Reverse Mortgages SIDAC
  14. Without The Reverse Mortgage Money I Would Have Been “Up The Creek Without A Paddle.” | Minnesota Reverse Mortgages SIDAC
  15. Reverse Mortgage Protects Retirement Plan | Minnesota Reverse Mortgages SIDAC
  16. “Own Your Future Minnesota” Campaign Launched – How are you personally preparing for your long-term care needs? | Minnesota Reverse Mortgages SIDAC

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: