Are You Financially Independent with a Reverse Mortgage?

August 31st, 2007 | Stacey | Debt Management, Financial Freedom, Financial Independence

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Are you financially independent? There are many Baby Boomers finding they have no pension and little savings so they have to work instead of retire. Gone are the days of relaxing with a hobby or taking naps as a senior citizen and many folks of retirement age are working to make ends meet.

Homeowners who are 62 years old or more can take advantage of reverse mortgages to get equity from their homes through a lump sum payment or monthly increments and have no monthly mortgage payment. This gives seniors greater financial freedom and help with debt in certain instances. However, in other cases seniors may find they have paid double in interest for a reverse mortgage.

With a reverse mortgage, the money does not have to be repaid until the homeowner dies or leaves the home. In some cases, a senior may wind up in additional debt or leave debt behind which exceeds the value of the home. To avoid this, it is essential to review lenders and have different options when you want to take a reverse mortgage on your home.

If a senior is struggling to pay off medical debts or put food on the table, a reverse mortgage can make them financially independent in an otherwise impossible situation. However, if a senior is looking for a more comfortable lifestyle, a part-time job may be preferable to a reverse mortgage. Researching the facts and costs and weighing your options carefully are essential when making this major decision about your home and your finances.