Reverse Mortgage: A Dignified Way For Retirees To Supplement Income

Reverse Mortgage: A Dignified Way For Retirees To Supplement Income And Take Care Of Expenses

For many Americans reaching the retirement age, the equity build up in their home is their only real asset. Reverse mortgage is a way to tap into this asset and create a stream of income needed for retirement or take care of an unexpected financial need that is usually related to health care costs in the elderly.

Reverse mortgage is not like a refinance, equity loan or a second loan on your home and there are some pitfalls.

So what is a reverse mortgage?
As the term implies the flow of money is reversed. Instead of the homeowner paying the lender on a predetermined schedule, the lender pays the homeowner and there arent any payments due until the home owner moves or dies.

How did reverse mortgage start?
Roger Maris broke Babe Ruths single-season home-run record in 1961 but like most things in life, a single act of kindness has a much longer longevity and a more widespread influence than that of fame and ironically these acts of kindness remain obscure.

The history of reverse mortgage can be traced to Nelson Haynes of Deering Savings...