Today’s Reverse Mortgages can be a great tool to help your elderly parents stay in their home. This type of mortgage essentially allows them to turn their home equity into cash. If they find themselves with little money, a reverse mortgage could be the perfect solution, and here’s why:
No Worries about Monthly Payments
With a normal mortgage, there can be many costs that contribute to inflating the monthly payment. Mortgage insurance premiums, loan interest and other fees can increase the payment making it more difficult to meet each month.
When they undertake a reverse mortgage, they don’t have to worry about any of that. The loan is paid back with home equity, not ongoing cash flow, so monthly payments aren’t a worry.
Their Income Won’t Affect Their Eligibility or Create Any Other Problems
If the reason they’re hoping to get a reverse mortgage is their low-income, the last thing they want is that income to be the deciding factor. With this type of loan, it’s not an issue. That’s because the thing that determines eligibility is their house’s value.
In fact, the income they’ll be getting from this loan is not taxable, which means they’ll be able to keep it in full. Plus, any benefits they get from Medicare will not be affected, and neither will their Social Security.
As such, what they’ll be getting is a loan that doesn’t take into account their current income. Rather, it adds on to it, without creating any issues for them. Plus, they’ll be able to get the money in several different ways, which means they’re in control.
Lastly, the money they get is fully theirs. That means that they can use it for anything they want, whether that means they’ll be paying off other loans, or simply funding their day-to-day needs.
They Won’t Be Taken Away From Their Home
Most Elderly really love their home. It’s the place in which they’ve invested money and effort. It’s also the place where many loved memories were created, and where they’ll keep on being created.
One of the hardest things for the elderly is being removed from their homes and placed into care. They have to leave the place they’ve grown to love. Worse than that, they’re thrown into a world they don’t know.
With a reverse mortgage, this doesn’t need to happen. With this type of loan, they’ll get additional income, and they get to stay in their own house.
Not only that, but they’re also keeping the title to that place until they move, pass away, or reach the end of the loan’s term. Their home will stay theirs, both effectively and in the documents.
There are many more reasons why a reverse mortgage is a great idea. However, the fact that you’re in complete control of the income you’ll be getting is one of the most important things.
If you’d like to learn more about reverse mortgages, give me a call at (925) 487-2353. I have a fantastic reverse mortgage specialist I work with that I would be happy to refer you to. In fact, she helped my parents so I have absolute trust in her!