How Do You Know If You Need A Reverse Mortgage? - part 2

by Grant Shellhammer

4) "I am on Social Security and Medicare. I don't want to lose those benefits." The largest benefit of the Reverse Mortgage is its guarantees from the Federal government. The program is regulated and facilitated by the Department of Housing and Urban Development and due to this, all Federal benefits like social security and Medicare are not affected whatsoever by the additional income generated by the Reverse Mortgage. The government classifies the proceeds from Reverse Mortgage as equity, not income. This also has the benefit of being 100% Tax-Free! You will not report any additional income on your tax return and the reserve of thousands of dollars of liquid funds will not alter your tax-bracket. These are some of the more common questions regarding Reverse Mortgages that are presented in the early stages of acquiring the loan. Almost every applicant will ask themselves one or all of these at some point. Here are some actions that you can take to help in your decisions to move forward with a Reverse Mortgage.

1. Meet with a HUD Counselor - People looking for more information should meet with HUD-approved counselor. These meetings are free of charge an offer the senior the chance to speak with an impartial, third party expert who can answer questions and recommend a lender. They will also provide you with a mandatory certificate that will be required to start the process, which is valid for 6 months.

2. Use an online reverse mortgage calculator - These are sites that will allow you to enter in some basic information about your personal situation and get some preliminary numbers that will be standard with any lender around the country. These are extremely useful to get a basic idea of what you can receive so you know what to expect when you speak with a lender.

3. Speak to a Reverse Mortgage Lender - One benefit of the Reverse Mortgage program's regulation by the government is that all lenders use the same interest rate, lending limits, and closing costs. There is very little discrepancy in the numbers involved in a Reverse Mortgage; so most decisions about lenders are based on the quality of service that is provided. These are some of the issues that seniors deal with when they are evaluating whether or not to acquire a Reverse Mortgage. For many, the opportunity to increase income, fund a long-term-care insurance policy, get a head start on their loved one's inheritance, or maximize the growth of their assets are reasons as well. Remember, the Reverse Mortgage works because it does not require payments to be made while the owner lives in the home, and a Reverse Mortgage does not affect the continued appreciation of the homes value. It will let a savvy senior have two assets working for them (the home's value and the home's equity) instead of one.

Copyright (c) Grant Shellhammer

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