Is a Reverse Mortgage Right for Me? Part 1
When your income is fixed, but the cost of living is not the financial problems people have become acute. In this short article, you will learn about how to obtain a reverse mortgage but also what are some of the pitfalls you need to watch for when shopping for a reverse mortgage.
Getting a Reverse Mortgage
You have dreams for retirement, but money challenges can cloud your dreams overnight. That is why the U.S. Government created a new kind of mortgage exclusively for seniors. It is called a reverse mortgage and it is the first mortgage where the bank pays you! How does this work? Congress saw a need for seniors to be able to use the equity in their homes and still live in their homes for as long as possible.
If you qualify, the equity you have spent years building can be paid to you in monthly installments, in one lump sum, or as a line of credit. Here is the best part: you never have to make a payment for as long as you live in your home.
Is a Reverse Mortgage the Right Choice for You?
At our law firm we know that reverse mortgages bring a lot of questions to mind about security, stability, ownership and risk. That is why
we can assist you with the resources and information you need in order to make confident choices about your financial future. In a senior reverse mortgage the law firm of Samuel A. Mutch, p.a. will ensure, depending on the type of reverse mortgage you choose:
You own your home – not the bank or some unscrupulous person.
You will maintain ownership of your home as long as you live in it – with no time limit. (however, at the end of your life the note secured by the mortgage may come due.
Your heirs will either have to pay down the mortgage (what you took out of the equity of your home while you were alive, plus interest; or the bank will take ownership of your home.
You may choose to never make a payment as long as you live in your home.
You should, by the terms of the reverse mortgage, be able to refinance whenever you want – with no penalty.
You should, by the terms of the reverse mortgage, not be required to pay a penalty for paying off your mortgage at any time.
You should be treated with respect by the financial institution with whom you are dealing, every step of the way.
If you have questions about the reverse mortgage the law firm of Samuel A. Mutch, P.A. promises to listen to your concerns, to answer
questions fully, and to help you make the decision that is right for you.
If you wish our law firm will attend the closing of your reverse mortgage to ensure that everything is correct and as promised by the
financial institution you have selected.
Why Obtain a Reverse Mortgage?
There are a lot of reasons to obtain a reverse mortgage, but they all have one thing in common: a reverse may mortgage assist you with financial freedom. 
If you have worked hard for a comfortable retirement, but the cost of living is getting in the way, a reverse mortgage may help. Here are some of the reasons the financial industry gives for getting a reverse mortgage:
You would like to stay in your home, but you cannot afford it.
Your income is fixed, but the cost of living is on the rise.
Gas prices, the cost of food and other monthly bills make every day living difficult to enjoy.
If rising expenses are pushing you out of your home, a reverse mortgage may be the answer.
You could get the money you need to cover your expenses and live the comfortably in the home you love.
Subsidizing your health care may be a reason for obtaining a reverse mortgage. Good health is your first priority. But with the rising cost of prescriptions, office visits and in-home care, many retired homeowners are finding it harder to afford.
The way we see it, there is no better reason for a reverse mortgage. A reverse mortgage can help you get a handle on your medical expenses by not only eliminating your monthly payments, but replacing that expense with additional income. Some people use their reverse mortgage to:
Help pay for prescriptions
Pay for in-home care for themselves or a spouse
Make improvements or updates to their home
Pay medical bills
Home improvements. Are your plans for your home bigger than your budget? Home improvements and repairs are expensive. A reverse mortgage may give you the same advantages as a home equity loan without an additional mortgage payment.
Lifestyle enhancement. When you planned for retirement, did you plan for high gas prices? What about rising food prices? If you are like most of
people, your vision of retirement was a lot different than what you can afford with the rising cost of living. A reverse mortgage may help get that dream back for you – whether you want to travel, visit family or just live comfortably.
Supplement your income. If you are not yet retired but are not making enough to cover the rising cost of living, a reverse mortgage can be a great
supplement to your income. Why be forced to downsize when you can live better in the home you love?
Help family members. Had you hoped to send a family member to college? Had you hoped to travel during your retirement? A reverse mortgage is a great financial tool to help you do any of that.
The proceeds from a reverse mortgage may be used in any manner in which you choose.
The Federal Requirements
for Getting a Reverse Mortgage
Here are the minimum requirements for a reverse mortgage set by the federal government:
• you must own your own home
• you must be 62 or older ( if you are married in Florida and your home is your homestead, both you and your
spouse must be 62 years of age.)
• you should have a good amount of equity built up in your home;
Age requirements can sometime cause the most confusion, raising questions like: what if my spouse is not yet 62 years old? Can one of
us qualify? Here is the rule to remember: if your name is on the title to your home, you must be 62 to qualify for a reverse mortgage. So, if you’re married in Florida and one of you is not yet 62 years of age, and the home is your homestead, it means that even with your spouse off the deed, he or she still owns the property by the entireties with you and you may not be eligible for a reverse mortgage until your spouse turns 62 years of age.) If you co-own your home with another person, other than your spouse, and you want both of your names on the title, you must
both be 62 years old. If one of you is not yet 62 years old, you can consider dropping their name from the home’s
title in order to meet the standards for reverse mortgage applicants.
You will need to determine if you have enough equity in your home to qualify for a reverse mortgage. Even if you still have an
outstanding balance on your first mortgage? You may still qualify. You should call a reputable bank for answers. Your primary residence is the
only home eligible for a reverse mortgage and you must be living in your home to qualify. Homes that are eligible for
a reverse mortgage are the same as with a regular mortgage, including:
• single-family homes
• most manufactured homes
• most condominiums
• 2- to 4-unit owner-occupied residences
• townhomes
Come back tomorrow for more on Reverse Mortgages.
Samuel A. Mutch: A Blog 