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Many Seniors Could Boost Their Retirement Income With A Reverse Mortgage
A reverse mortgage allows a senior citizen to make money by receiving payments monthly against the home they own. This is a supplemental income source compared to more traditional investment income sources such as bank fixed deposits, national savings certificates, etc. This income is usually tax-free. If you are a senior citizen and are looking for supplemental income, consider a reverse mortgage. You have nothing to lose and dollars to gain.
30 Year Fixed Mortgage Rate
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|Change From One Week Ago||0.008%|
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15 Year Fixed Mortgage Rate
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|Change From One Year Ago||-0.349%|
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There are myths out there about reverse mortgages that are very out of touch with reality. The truth of the matter is that you should not believe the myths about reverse mortgages. The first myth is that the bank takes responsibility for the home. This is not true as the homeowner holds the title when you sign a reverse mortgage. Also, a retiree cannot be evicted from the home as a specific clause within the FHA prohibits that. Reverse mortgages are actually very beneficial, contrary to the popular belief that they are exploitative. When considering a reverse mortgage be sure to educate yourself on what is real and what’s not.
When you purchase a home or property the mortgage payment is not your only concern. You also have property taxes, insurance, and maintenance costs to consider. In some scenarios, property taxes can cost as much as the mortgage. Why is that? The newer your home, and the more land your home sits on, the more your property tax bill to increase. The more the home is worth, the more taxes you’ll pay. Location plays a role in this equation as well. For example, New Jersey has the highest property taxes in the nation. When purchasing a home or property be sure to fully do your homework to be sure you can afford it.
If you are considering refinancing your home, use this six-step process for success. Number one, figure out your refinance goals. The second step is to get as many rates from several lenders as to secure the best rates. Step three: compare rates and fees. Step four: Complete the application and submit your documents. Step five: get an appraisal and underwriting done. Finally, closing is the last step in the process.