For retired seniors 62 years or older, the idea of getting a mortgage or other kind of loan may be a scary thought. You may be wondering if you will be able to pay it back. There is one kind of mortgage specifically for this age group. Reverse mortgages for senior citizens may be your solution to your financial burden. These mortgages allow seniors to convert part of the equity in their homes into cash, which helps retirees pay basic living expenses and health care. Here are some reasons to consider this type of loan.
More Money
The obvious reason to get a reverse mortgage is that it gives you access to money. Many people find that they are unprepared when it is finally time to retire, so these loans offer a way to get around that. Instead of having to pay a mortgage for their homes, reverse mortgages for senior citizens are actually payments to the homeowner. The money can be used for anything; you can catch up on bills that you owe or use the money to pursue some of the things you wanted to do.
Increased Social Security
Another benefit is that it could help you increase your social security earnings. The longer you delay taking your benefits, the more they grow. A reverse mortgage can help pay bills to put off social security until you can receive significant bonuses.
Loan Counseling
The final benefit to this kind of loan is that you are not allowed to enter into it without counseling to help you understand the terms of the loan. After the Great Recession, many regulations were put into place to protect senior citizens from being tricked into a product they did not want.
If any of these benefits appeal to you, it may be time for you to do research on reverse mortgages for senior citizens. Find a professional to help you today.
