Many homeowners review their mortgage bill statements with a range of mixed emotions. While they might be very close to paying off their balance, the thought of all those years of hard work that went into making those monthly payments still haunts them.
And the pain continues because today, more retirees are having to carry mortgage debt into retirement than ever before.
The Home Equity Conversion Mortgage, commonly known as the reverse mortgage, is a federally-insured loan product that has proven to relieve households of major financial burdens.
Living without a monthly payment can free up cash flow for retirees, and allow homeowners to save for home improvements, rising healthcare costs and vacation time with family.
It not only relieves pressures from the recipient, a reverse mortgage offers several benefits to the heirs. Children of reverse mortgage recipients often plan for the new income stream with their parents.
The reverse mortgage reimbursements could potentially cover unexpected expenses, further education or paying off existing credit cards and other debt.
Even without the stress of financial burdens, for many homeowners reverse mortgages restore dignity. Not having a mortgage to pay is just one less obligation at a time when homeowners need less on their plates.
Joe Conrad is a reverse mortgage specialist at Skyline Home Loans. For more information, send him an email at JConrad@skylinehomeloans.com.