Homeowners over the age of 62 are eligible to look at a government-backed loan product called a reverse mortgage. There was a good article recently over at CNNmoney.com on the subject. Here are a few excerpts:
A reverse mortgage can be a good way for people 62 and older to turn their home equity into extra spending cash that can supplement Social Security and withdrawals from savings, making retirement more enjoyable than it otherwise might be.
Typically, you can take the loan proceeds in a lump sum, monthly payments for life, as a credit line or a combination of these.
One of the big appeals of this type of arrangement — as opposed to, say, tapping your home equity by refinancing or opening a home equity line of credit — is that you don’t have to repay the loan until you die or move out of your house.
Another plus is that the payments you receive from a reverse mortgage don’t affect your Social Security benefits (although they could affect your eligibility for programs like Medicaid and Supplemental Security Income, or SSI, the program that provides income to people with low incomes and disabilities)
Keep in mind that you need to have a decent amount of equity in your home to be a candidate for a reverse mortgage. If you would like to learn more about reverse mortgages just fill in the contact form on the right and one of our counselors with follow up with you.