Mortgage, insurance, and loan are business, so even though the offer is very tempting and seems to serve us maximal benefit, but we have to be aware and act selectively before choosing the offer. Sometimes, doing certain researches is required especially to avoid us from painful mistake in the future. One of the offers that look so tempting is reverse mortgage. It is made for seniors above 62 years old. The mortgage is aimed to help seniors, so they don’t have to get confused about their living cost and taking the value of their property first instead.
Tax is one thing we have to pay more attention at, especially when making financial decision. Luckily this mortgage is a non-taxed mortgage. Therefore, the money received by seniors is not cut by tax. Seniors is allowed to choose whether they want to receive the money per month or us a sum lump method.
One of the common questions is whether seniors can live in the home used for reverse mortgage or not. The answer is definitely yes. Seniors may stay in their home but they don’t anymore have the right for the property. Their home will be taken after they died or decided to move to other places. And once they passed away, the lender will own the property right away just as the agreed term earlier.
Reverse mortgage is suitable for seniors who need some amount of money while they unable to make it on that age. As the solution, they may put their home into reverse mortgage and get some amount of money depend on the value of the property so they can still pay off all the bills or debts on their senior age. It suits perfectly for seniors who live all alone on their home and their children have their own home. And to avoid any problem in the future, it is highly recommended for seniors to talk to the heirs before they sign the paper.
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