Getting Higher Retirement Income through Reverse Mortgages

Today, there are older individuals who are looking for other types of income such as the reverse mortgage program. This is because of the fact that they are trying to survive on savings and social security. With the stock market meltdown in the year 2008 the elderly people's personal savings got affected. Many of them have lost a huge percentage of their personal savings. With the reduced savings in their retirement, there are many retirees that felt vulnerable and searching for creative ways to get more in their pension income. To get more for their monthly income, the seniors are looking at reverse mortgages as excellent resources.

A lot of them are familiar of the mortgage. What you need to do is to just apply for a loan so that you can buy a house and refinance the loan. You must meet certain criteria so that you will get approved for the loan that you are applying and you should know that there are fees you need to pay. Since you already have your home when you apply for a reverse mortgage, the equity of the home is necessary for your loan application. Since you are paying your conventional mortgage, the equity of the home is built and this reduce the debt amount and increases the home's value. The value as well as the equity of the home would be used for the reverse mortgage.

To apply for reverse mortgages, there are certain requirements that you need to meet. You should be at least 62 years of age during your application. The home that you have should be your main residence. To know who can apply and get approved for the reverse mortgage, the loan originators have certain restrictions.

This kind of mortgage is insured by the government and prior to the completion of the application, you need to talk to the loan counselor. With the reverse mortgage programs, you still have to pay for the insurance and taxes since these are not spared though the loan is government-insured.

With the reverse mortgage, you will get the money through a lump sum, monthly payments or through a one-time payment. The money can also be obtained as a combination of these or through a line of credit. You are allowed to use the money for any purpose that you have in mind such as for medical care and therapy, paying off your bills, vacation or to pay for living expenses. There are many people who have retired are considering the reverse mortgage to pay for living expenses instead of looking for and going back to work.

A great advantage about the reverse mortgage is that there is no need to make a payment on the loan unless you move to a new home, sell it or die. The mortgage will be repaid through the money you obtain from the sale of the home.

And before we end this article, specifically avail of the aarp reverse mortgage calculator which should be really helpful to you.