While one may start saving money early for retirement, a number of issues can often come up over time to drain such savings. So, regardless of how much one has saved over time, one can never be sure whether or not one may still have enough money come retirement age. As such, it is more important than ever that communities see seniors grasping a clearer understanding of the reverse mortgage and how it can provide funding for retirement when on a fixed income.
Of course, as with all financial concerns, one should look over the details with trusted family members, a reverse loan advisor, accountant or attorney before opting for a reverse mortgage. For, while one may receive income from such mortgage, they may also want to be sure that they also have the ability to keep the house in the family upon death and understand how the loan is repaid after death of the second spouse.
Often the language in such agreements, contracts and documents is complex In fact; It is often recommended that one have a reverse mortgage specialist or closing attorney review any such loan agreement or contract and explain them in detail. For, in doing so, you can be assured that you have made the best decision and have full comprehension of the process. The government sponsored HECM actually requires each candidate follow through with HECM counseling prior to funding the loan to answer any questions or concerns they may have in regards to the process and the cost, proceed disbursements, and how the house will remain as the borrowers property until the death of the 2nd to die spouse.
Seniors receive payments rather than having to make payments, making a home equity conversion mortgage an excellent survival tool for some seniors. It is important to be sure that you understand that you still have the ability to either transfer ownership of the home, or leave it to children, relatives or a charity upon death as long as the debt is repaid to the lender or the house is sold and the balance goes to the family heirs. As such, it is imperative that one clearly understand any and all agreements, contracts or other documents which one may sign related to the same. In fact, if one desires the most protection when conducting such business, one may want to have an attorney present at the time one asks such questions and signs the closing documents.
To this end, seniors gaining better comprehension of reverse loans for funding retirement on a fixed income is important so that reverse mortgages are viewed for their financial purpose rather than a strategy for selling mortgages
Source by Christopher Beard