Is the reverse mortgage useful to you?
4.9 (98%) 32 votes
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As a Reverse Mortgage Agent, I see many heartbreaking stories every day. The sad truth is that most of us don’t have an adequate retirement plan. I am 64 years old and I fall into this category. Most of my friends are retired and have big 401Ks or pensions. They almost all work for large companies.
I took a different path. I have been self-employed for most of my life. It gave me a lot of freedom and the ability to control my own destiny. I have achieved a certain level of success, I am able to maintain a comfortable lifestyle, buy luxury cars and clothes, and go on expensive vacations. I haven’t saved any money for retirement and I have to retire on a fixed income provided by the Social Security Bureau. If I pay the house money, my condition will be much better. If I retire now, I can almost rely on Social Security of $1,850 to pay me. If I wait until the day I am 66 years and 6 months old, it will increase to 2200 US dollars, and if I continue to work until I am 70 years old, I will receive a huge sum of 2600 US dollars per month. The only problem is that I haven’t paid for the house.
At this point, I can choose a reverse mortgage. A reverse mortgage can eliminate housing payments for the rest of my life and keep me home forever. Unless I die, leave the house, or sell the house, they will never be able to claim a loan due.
I will be responsible for tax and insurance approximately $300 per month. I also have to pay the homeowners association membership fee, which is currently about $325 per month. Therefore, out of my monthly $1,850 from SSA, I will have to live on $1,200 per month. It’s doable but not very comfortable. Not what I’ve been trying to achieve for 40 years
The reverse mortgage can also give me a line of credit, which I can use at any time. If I don’t click on it, it will increase at a rate of about 3% per month. That doesn’t sound like much, but remember that’s more than the edge I get in the bank. Once the value of me is determined, even if the value of my house goes down, they can never reduce my credit limit or my credit limit, nor can they allocate maturing loans.
If you have a HELOC (Home Equity Line of Credit), the HELOC amount can and has been reduced in the past due to the value of real estate at the time. When the subprime mortgage bubble burst in 2008, almost everyone encountered this situation. People find that when they need money the most, they can’t get it. This has led to many people filing for bankruptcy as they are no longer able to pay their bills after being made redundant.
Reverse mortgages can prevent this. They placed a mortgage insurance policy to protect the bank if the value fell again. It can also protect borrowers from the adverse effects of bank failures.
Reverse mortgages are designed for seniors who have little money but have accumulated a lot of assets in their home. For me, it’s not uncommon to find old people trying to make less than $2,000 a month, but there are hundreds of thousands of dollars in homes.
If you encounter this situation, check out reverse mortgages. It will help you improve your financial situation, provide you with more money to spend each month, and provide you with the security of staying at home at all times.
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