With food costs, medical bills, and general living expenses, seniors know that it can be extraordinarily difficult to live on a fixed income. Sometimes savings, Social Security payments, and other sources of income just aren’t enough to make ends meet. If this struggle seems all too familiar to you, a reverse mortgage for seniors might be worth considering.
If you are at least 62, a reverse mortgage might allow you to use the equity you have built in your home to obtain a lump sum or smaller monthly payments of cash to expand your spendable budget. Alternatively, if you prefer, many reverse mortgage lenders will trade the equity in your home for a line of credit that you can access when the need arises.
You will find that your reverse mortgage probably comes without added financial stress. Instead, the loan is repaid in full upon the death or movement of the borrower when ownership reverts to the reverse mortgage lender. And, if you are concerned that payments received from your reverse mortgage will affect your other benefits, don’t be. Generally, reverse mortgage payments are not taxable and do not alter either Social Security or Medicare payments.
Further, if you do not have good credit, a reverse mortgage might be right for you. Because you will not be required to make monthly payments, reverse mortgage lenders will generally not consider your credit score. You will, however, be required to prove that you can pay the costs associated with receiving the reverse mortgage loan.
Since you already have worked to build equity in your home, you might consider using that hard work to ease your burdens. If you are struggling to pay your monthly bills, a reverse mortgage for seniors might be the best option to meet your expenses without the stress associated with other loans.