• Home
  • E-Booklets
  • Pay Less Tax
  • Privacy Policy
  • Cheatsheets
  • Contact Us
  • About us

Retirement Income

New Ways to Get More Retirement Income

  • Retirement Advisors
  • Retirement Insurance
  • Retirement Investing
  • Retirement Living
  • Retirement Planning

What Is a Reverse Mortgage?

Posted on January 21, 2013 by bobrichards

What is a Reverse Mortgage?

Banks are happy to lend you money against your home, not ask for any payments and collect only when you die or move from your house. What a deal!

Reverse mortgages can be a fantastic way for seniors (must be age 62+) with home equity to use that equity to increase income. The equity in your home is like a bank account paying you zero interest. Why not use that asset to live more comfortably?  Would you ever leave money in a bank account at 0% interest?

Many seniors may want to leave their home to heirs. But if in fact they need income, why not live a better life and turn that home equity into income? Because no payments are made to the bank on reverse mortgages, the senior homeowner gets a lump sum or monthly payments without ever needing to worry about making repayments. Payments will be due only if the borrower moves from the house or dies. Let the kids make their own money.

With trillions of dollars in the home equity of seniors, this is a great source of potential retirement income. And while less than 500,000 reverse mortgage loans have been made nationwide, this source of retirement income is growing fast and maybe one source of retirement income that saves many baby boomers.

For some odd reason, people have some fear of reverse mortgages and this is simply illogical for the following reasons:

1. You get the bank's money, they don't get your money so they should be the party that has fear of getting paid back

2. You cannot have your house suddenly taken away form you.  There is a contract and everything is spelled out clearly.  If you fear you wont understand it, then get a lawyer to explain it to you.  The bank gets possession of your house if you die, move out or fail to pay property taxes.

As the reverse mortgage market evolves, we keep information up-to-date.  More on reverse mortgages

Reverse Mortgage 1

Reverse Mortgage 2

Reverse Mortgage 3

Retire Smart: a Simple Retirement Guide

How those of modest means can have an easy retirement
  • Three ways to get more retirement income that your financial advisor never mentions
  • Common mistakes to avoid that many retirees make
  • Four ways to protect assets that you cannot overlook
  • The 4-step method to planning a worry-free retirement
  • You now people of modest means that live a great retirement. You can too. Learn the simple lessons in our free guide.

    You might also like:

    • Recession Can Be Good for Retirees - The Silver Lining of Recession
      Recession Can Be Good for Retirees - The Silver Lining of…
    • How to Pay Lower Taxes on IRA Distributions
      How to Pay Lower Taxes on IRA Distributions
    • Bear Market - When Will It End?
      Bear Market - When Will It End?
    • Retired and Stocks Losing Value
      Retired and Stocks Losing Value
    • When Will the Stock Market Recover
      When Will the Stock Market Recover

    Filed Under: Retirement Income Tagged With: reverse mortgage

    About bobrichards

    Bob Richards
    Editor | Involved in Various Marketing Positions within the Financial Services Industry

    Leave a Reply Cancel reply

    Your email address will not be published. Required fields are marked *

    Second place winner best retirement blog

    SH award winner SMALL (1)

    Not Enough Savings to Retire?
    Learn Six Ways to Earn Retirement Income (from home)

    You do not need special talents, skills, computer knowledge, etc. We show you multiple ways others are working a few hours a week to generate a comfortable retirement income.

    Download Free Copy

    Latest Posts

    Recession Can Be Good for Retirees - The Silver Lining of Recession

    Recession Can Be Good for Retirees - The Silver Lining of Recession

    Bear Market - When Will It End?

    Bear Market - When Will It End?

    When Will the Stock Market Recover

    When Will the Stock Market Recover

    How to Pay Lower Taxes on IRA Distributions

    How to Pay Lower Taxes on IRA Distributions

    Retired and Stocks Losing Value

    Retired and Stocks Losing Value

    Categories

    • 401K IRA Roth Withdrawals, Distributions, and Rollovers
    • Annuities for Income
    • Estate Planning
    • Retirement Advisors
    • Retirement Insurance
    • Retirement Investing
    • Retirement Living
    • Retirement Planning
    • Social Security
    • Supplemental Retirement Income
    • Tax Savings
    • Alternative Investments
    • E-Booklets
    • Pay Less Tax
    • Privacy Policy
    • Cheatsheets
    • Contact Us
    • Subscribe
    • Sitemap

    Recent Posts

    • Recession Can Be Good for Retirees - The Silver Lining of Recession
    • Bear Market - When Will It End?
    • When Will the Stock Market Recover
    • How to Pay Lower Taxes on IRA Distributions
    • Retired and Stocks Losing Value

    The Retirement Income Blog

    25A Crescent Drive #1508
    Pleasant Hill CA 94523
    T: 844-887-4131
    E: [email protected]

    © 2018 Retirement Income