As my mom spins into retirement she is on a never ending quest to increase her retirement income and make her life more enjoyable. At some point I suggested that she check out reverse mortgages and see if that would work out for her. She loved the idea and applied for the loan. She loves her home and it's in a good safe neighborhood so, she has no interest in selling her house and moving to use the equity. The reverse mortgage increased her income by over four hundred dollars a month and she has been delighted with the extra money.
Many people aren't aware of reverse mortgages. If you own your own home and have equity built up in it, you should consider a reverse mortgage to help generate extra income as you retire and make your life more comfortable.
You need to be 62 or older to obtain a reverse mortgage and how it works is that You obtain a loan based a percentage of the equity in your home. The lender will pay you monthly payments depending on the terms of the agreement usually until the day you die or until you move out of your home. In the end your home is sold to repay the loan--usually after you die, (grim huh?) If you decide to try out a reverse mortgage read the terms of the agreement carefully and ask any questions of the lender that you might have. It's something to think about anyway.
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