House Rich, but Short Cash?

Many senior homeowners today are living in highly valued, debt-free homes and yet, are finding it harder each year to remain confident in their financial security. Costs for food, taxes, utility bills, medical services, treatments and prescriptions always seem to be rising, and many seniors, like yourselves, are struggling more and more each year to make ends meet. This is certainly not the retirement life you had hoped for … and it need not stay that way.

You made an investment that has increased in value far beyond anyone’s expectations – your home. Typically, your goal is to leave this asset to your children, and there are some seniors who are compromising their own lifestyle and well being in an attempt to do so. The reality is that you can regain your financial freedom and still leave a substantial legacy, if you understand your options.

There are special lending programs available exclusively to homeowners, age 62 years and older, called reverse mortgages. These programs allow you to tap into a portion of your home value so that you can:

- afford to stay in your community
- maintain your quality of life
- provide for your families’ needs and obligations
- have the ability to strengthen your financial future
- simply rest easier knowing that you have access to a monetary resource if necessary

A reverse mortgage can only be made on a primary residence. You retain full ownership of the property. There are no mandatory monthly repayments for as long as you live in your home (although you can re-pay any portion of the interest or principal at any time with no penalty). If and when you decide to sell, any value in excess of the loan payoff amount belongs to you (In the case of an estate sale, the same is true, with the balance credited to the estate).

The proceeds from a reverse mortgage are tax-free and are not considered income by the IRS (therefore they do not interfere with any entitlement benefits you may be receiving). The funds are available as a lump sum, fixed monthly payments, a line-of-credit, or as any combination of these three options.

The funds can be utilized for - daily living expenses, home improvements and repairs, property taxes and home-owner’s insurance, prescriptions and medical bills, credit cards payoffs, financial and/or estate plans, long-term care Insurance, funding gifts and trusts, vacations, or anything else you desire.

Additionally, a reverse mortgage is the easiest loan for which to apply because, unlike traditional mortgages or home equity loans, there are no income, asset or credit requirements to qualify.

Reverse mortgage programs enable you, as a senior homeowner who may find themselves house rich, but short cash, to utilize some of the excessive appreciation that has accumulated in your home and still leave plenty of assets to your beneficiaries in the future.




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