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Published On: Thu, Aug 23rd, 2018

Is reverse mortgage a good option for retirees: A Sneak Peek

Retirement is a period when you would like to bask in the thoughts that you have lived your life well, earned whatever was due to you, not just in terms of money but in terms of love, respect, wisdom, experience, and peace of mind. As such, whatever, decision you take now must not hurt your peace and tranquility. In this regard, the state of your finances post retirement plays a crucial role. Now that your fixed income stops, you must be financially equipped to fulfill all your financial obligations.

Applying for reverse mortgage may be a solution to a great extent when it comes to finances. In this write-up, let us find out more about reverse mortgage and its essential aspects if you are living in the state of Pennsylvania.

photo/ mohamed Hassan

Essential aspects of reverse mortgage in Pennsylvania

Check out the information pertaining to the same in the paragraphs that follow.

 

  • What reverse mortgage implies

 

Prior to taking the plunge, make sure you understand what it means and what it entails. In order to be eligible for it you must be residing in your home which is your primary residence. You must be 62 years and older. You should also have enough equity in your home for it to qualify for reverse mortgage.

Most importantly, as an applicant, you must be attending counseling sessions by an approved Federal Housing Administration (FHA) counselor. With the equity that is trapped in your home, you can supplement retirement income thereby maintaining the same lifestyle as you have been before retirement.

 

  • Ownership of your home

 

You avail mortgage amount against your home without having to give up home ownership. You can still exercise control of your home taking care of the maintenance of your house, staying abreast and up to date with the property taxes, homeowners’ fees, and insurance payments, if any.

 

  • Repayment

 

You will be required to repay the loan not in monthly installments but the principal amount has to be repaid, the accrued fees, and interest amount has to be paid when you are no longer staying at the primary residence against which you have taken out the mortgage or if you plan to shift to Christian retirement home. As far as getting the proceeds of the mortgage is concerned, you have the following options to select from-

 

  • Monthly payment

 

This will supplement the monthly income that you require for meeting various financial obligations and expenses.

 

  • Lump sum amount

 

In this, you get the proceeds at once as one-time payment. However, there are disbursement limits that have to be met.

 

  • Line of credit

 

As and when you require you can withdraw the money.

Alternatively, you can also opt for one of the options or two options together depending on your requirement, the equity trapped in your home, and your eligibility criteria.

Benefits of reverse mortgage in Pennsylvania

You can enjoy the following benefits on availing this mortgage that is a favorite among retirees in the United States, particularly in Pennsylvania.

  • You can refinance a reverse mortgage, which can also increase the availability of funds provided the value of your property increases.
  • The biggest advantage is that the Social Security benefits that you avail from the government will not be affected in any way and you will be able to continue enjoying the same.
  • The funds you receive from reverse mortgage will not attract taxes.
  • You will also be able to buy a new home

The best way to get the most lucrative deal is to seek professional assistance of a reverse mortgage specialist operating in Pennsylvania for quite some time now. Also, don’t forget to check the past track record of the mortgage specialist.

Author: Jimmy Simond

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