A reverse mortgage is a loan designed to allow seniors to maximize the equity in their homes by accessing flexible credit in unique ways that were not previously available.
The flexibility of the funding options for a Reverse Mortgage are tremendous. Money can be taken out up front in conjunction with an annuity. A key benefit is that the annuity is for your entire remaining life and the life of your surviving spouse, no matter how long you live, as long as both of you are on the loan. Alternatively, you can choose to start with an unused credit line that grows each year on a schedule and later choose to convert it into a lifetime annuity. The program options are flexible and the choice is yours.
A favorite benefit of a Reverse Mortgage is that it can be used as a planning vehicle to remove a homeowners’ monthly mortgage payment and replace it with a new income stream in the form of a monthly annuity. This provides a double benefit for the homeowner given it removes the monthly out of pocket expense of their current mortgage and replaces it with the addition of a monthly cash flow stream from the lifetime annuity.
A Reverse Mortgage also allows for access to credit that otherwise may not be available to a retired homeowner in the form of a non qualifying loan. Again, you may elect cash up front, a monthly annuity, an open ended credit line, or even a combination of these items. There are many benefits that can come from adding a Reverse Mortgage to your plan. We welcome you to visit our site at www.jeffersonmortgage.com and see if a Reverse Mortgage is a good fit for you.
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