People are living longer than they did 100 years ago, when the average life expectancy was just 49. But living longer doesn't necessarily mean living better. According to the 2012 Retirement Confidence Survey by the Employee Benefit Research Institute, 28% of Americans have less than $1,000 in savings and investments, 60 percent of workers report having less than $25,000 in savings or retirement assets. A substantial portion of most retirees net worth is tied up in home equity.
In addition, more than 25% of the senior population is inflicted with a physical impairment that requires some form of remodeling to make their living experience more palatable. Considering these facts many seniors are deciding to enroll in reverse mortgage programs to eliminate all monthly mortgage payments, make use of the equity in their homes to make changes to accommodate limited mobility, and take a lump sum or monthly payments to improve their financial situations.
Benefits of a Reverse Mortgage:
- Never have to leave your house, just pay your property taxes and insurance
- No income or credit qualification
- No monthly mortgage payments EVER
- Proceeds can be distributed in a lump sum, monthly, as a line of credit or combination
- Never give up title to the house
- Help your cash flow, have a better life for yourself
- Loan repayment never exceeds the value of the home
- Pay off tax liens, remodel your home, travel, buy your dream car, or give the proceeds to your heirs while alive to see them enjoy it
Reverse mortgages are safe per Suze Orman
According to the US Department of Housing and Urban Development (HUD) Reverse mortgages are increasing in popularity with seniors who have equity in their homes and want to supplement their income. The only reverse mortgage insured by the The federal Government is called a Home Equity Conversion Mortgage or HECM, and is only available through an FHA approved reverse mortgage lender.