Most people find that they spend too much time thinking about, planning for, and dreaming of the time when they will retire. These dreams often include fantasies of settling down under sunny skies with no worries and looking forward to the next visit from the grandchildren. Retirement is seen as a time where special interests are explored, new skills are cultivated, family and friends are enjoyed more, and life is lived to the fullest. Unfortunately, the retirement years are full of challenges because the paycheck of a full-timer is now gone. Arizona and Florida are two states where this is a common problem due to their high populations of retirement citizens. When finances become a challenge, one option available to Arizonians and Floridians is that of a reverse mortgage. This enables older Americans to live in comfort and security in their own homes by turning their equity into a monthly income. What Is A Reverse Mortgage? A Reverse Mortgage is simply a unique mortgage or loan taken out on your home that allows the older American to use the equity you have built while at the same time maximizing your specific flexibility to meet your financial needs. It could be used as a lump sum to pay medical bills, or simply a set amount of monthly income to supplement your current income.
What Are The Benefits To A Reverse Mortgage? The key to a reverse mortgage is that there are no ore-payments on it as long as you live in your home. With reverse mortgage you can eliminate your mortgage payment and have some extra cash. In both states of Arizona and Florida, the income you receive is tax-free and there are no income qualifications as you are using existing equity.
Does Everybody Qualify? In Arizona, you need to be at least 62 years old, and in Florida 65. In both states you will be eligible if you own your home outright, or if you have an existing mortgage. How big a loan you take shall depend on your age, the kind of loan you want, the value of your home, and the current market interest rates.
How Do I Pay My Reverse Mortgage Back? You will need to pay your reverse mortgage back if the last survivor either moves out or expires, all borrowers permanently move from the home, you stop paying property taxes or home insurance, or the property deteriorates beyond reasonable wear and tear and you do not resolve the issues.
Will My Heirs Be Responsible For My Reverse Mortgage? Your estate will be responsible for your reverse mortgage. If your home is sold in the event of your death, the estate will repay the lender from the cash received. Any remaining equity will go to your heirs. You can never borrow more than your home is worth, so the proceeds from the home will repay the loan with sufficient remaining from your heirs. None of your existing assets outside of your home value will be affected.
For many retirees in Arizona and Florida, a reverse mortgage can truly better their quality of life. They are assisting the senior citizens of these states get a taste of better financial security and enjoy their retirement years in the very Utopia that they had imagined.
Ajeet Khurana writes about a host of interesting topics. He recommends: Arizona Mortgage Loans, Florida Mortgage Loans and Real Estate Brokers.
