| For seniors facing exorbitant expenses, a reverse | | | | increased quality of life that they and their families gain |
| mortgage can provide an unanticipated and welcomed | | | | can make the loss worthwhile. If a child is helping their |
| relief at a time when their income is smaller than ever. | | | | parent with expenses, they would probably find this |
| A lifetime of hard work should be rewarded, rather | | | | program a welcomed relief as well. |
| than suffer a penalty in the form of financial anxiety | | | | Although Medicare and Social Security are not |
| and penny-pinching. Medical expenses, home repairs, | | | | affected, Medicaid could be. Equity frozen in one's |
| family visits, groceries and car payments all add up to | | | | home is not considered when it comes to Medicaid |
| a cost that threatens to overwhelm social security and | | | | requirements, but equity in cash form, depending on |
| Medicaid assistance, and sometimes a reverse | | | | how much income is created, may change Medicaid |
| mortgage can make all the difference necessary for a | | | | benefits. Additionally, seniors with unstable health may |
| happier retirement. | | | | have a higher likelihood of nursing home stays, or other |
| Certain forms or reverse mortgaging have been | | | | stays away from home. This could mean that their |
| around since the 60's and in the past few years the | | | | home ceases to be their primary residence which is a |
| popularity of this option has skyrocketed. The basic | | | | requirement. |
| concept is that seniors can receive a cash return on | | | | The benefits of a reverse mortgage are fairly clear, |
| the equity of their home while still living in that home as | | | | but there are costs including an origination fee and |
| their primary residence. There are a few eligibility | | | | interest. Most lenders have senior's best interests in |
| requirements, including being 62 and older, either owning | | | | mind, but there are a few who may try to take |
| the home fully, or having a remaining mortgage small | | | | advantage of seniors by tacking added costs on at |
| enough to be paid off with the proceeds from the | | | | the last minute when the ball is already rolling. This is |
| reverse mortgage at closing. | | | | one reason the FHA requires counseling before |
| There are other cons to seniors taking the equity in | | | | seniors can take out a reverse mortgage. As long as |
| their homes, such as the possible loss of an inheritance | | | | these added costs are weighed from the beginning, |
| to pass on to children and grandchildren. On the other | | | | homeowners can make informed decisions that do |
| hand, the money gained in their lifetime and the | | | | benefit them in the long run. |