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Is The Reverse Mortgage Right For You?

"I don't think a reverse mortgage is for me, I planned for my retirement!" Does this sound like something you are thinking or have thought? Then you are not alone.

We have had so many borrowers tell us that they thought they had planned adequately for their retirement and never thought they would need a reverse mortgage. Some even felt embarrassment or shame that the retirement plans they had so carefully made were coming unraveled.

It's not your fault that borrowers are living longer, healthier lives and are therefore more active today than at any time in the past. It's not your fault that the costs of living have risen above most pensions and that many pensions and savings have been adversely affected over the years by financial maladies in the stock markets and other investment vehicles.

It's not your fault that the cost of living has risen much more quickly than the return on the funds that you set aside. John Lennon said Life is what happens to you while you're busy making other plans. Well that is true with your retirement as well.

Regardless of how well you thought you planned, life has a way of throwing you a curve ball and soon everything ends up getting in the way of those plans. Consult with a reverse mortgage specialist and trusted financial planner to see how a reverse mortgage just may help you get back on the right track toward a financially independent retirement.

A reverse mortgage can help you stay in your home and since you can elect how you receive the money, you can choose to receive monthly payments to augment your income, you can receive a lump sum of cash to spend however you choose, or you can keep the money in a line of credit available to you at your request.

Unlike Home Equity Lines of Credit offered by your local bank, the reverse mortgage cannot be closed or frozen if the bank decides your income or the property's value is not what the bank thinks it should be. Say goodbye to worries about the rising cost of food, gas or energy bills.

Many senior homeowners have utilized their reverse mortgage funds for a variety of needs such as medical and prescription assistance. Others have chosen to update their homes either to make them more accessible or more "senior-friendly". Still others have determined that they wanted to use funds to travel or for other leisure activities.

In these economic times, it is also not uncommon for senior homeowners to again look to see how they can help their families, including college tuition for grandchildren. Whatever your reasons might be, a reverse mortgage may be the tool that allows you to live the lifestyle you deserve and stay in your home when circumstances would otherwise require you to leave.

Besides all the great things people can do with the proceeds of a reverse mortgage if their home is currently paid off, there is another category of senior borrower who also can benefit greatly from a reverse mortgage. That is the senior homeowner who still has a mortgage payment. It is another common misconception that your home must be owned free of current loans to get a reverse mortgage. A reverse mortgage can be used to pay off existing mortgage loans and other liens.

You can eliminate existing loans and more importantly the monthly payment that goes along with them with your reverse mortgage. Because a reverse mortgage does not require any income or credit qualification, you can even get a reverse mortgage if you are currently behind in your mortgage payments.

Whether you are thinking about your retirement and how to be more comfortable or how to stay in the home you love, a reverse mortgage might just be the last loan you will ever need and we would welcome the opportunity to help you achieve financial security in your retirement years.

About the Author

Michael G. Branson (CEO All Reverse Mortgage Company)is a Mortgage Broker who has over 31 years of mortgage banking experience. Toll Free (888) 801-2762
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Feb/22/2009 Comments Comments