You earned it. You invested it. Now, it’s time to benefit from it. For most Americans, their home is the best investment of the lives. It’s an investment account that you’ve lived in. One that you worked tirelessly for; one that sheltered you in return. Now, your home can provide you with comfort of another kind: financial security in your golden years.
A reverse mortgage transforms your home equity into cash, returning your investment to you in the form of cash, all while you remain in your home. A variety of payment options are available to qualifying homeowners, including a one-time lump sum, regular monthly payments, or a line of credit. And thanks to a generous bipartisan federal agreement, income received from reverse mortgages is tax-free. But this agreement, and the government policies that permit and regulate reverse mortgages as a whole, could be reversed at any time, so qualifying homeowners should certainly do their due diligence, but do so efficiently.
A reputable reverse mortgage does not transfer ownership of our home over to the lender or another third-party. Any agreement that does is not a reverse mortgage, and should be met with the utmost skepticism. A reverse mortgage from a reputable lender is essentially a cash loan to your estate, with your home as collateral. When you and your spouse move or pass away, the loan becomes due, to be paid by your estate or the sale of your home. Until then, your home is just that: your home.
A reverse mortgage provides payment to you in monthly installments, but is not considered income by the IRS. As such, it has no impact on your Social Security or Medicare benefits. It’s truly the best of both worlds: access to the hard-earned money you’ve invested in your home, without hurting your ability to receive the government benefits you currently collect.
A reverse mortgage is not a get rich quick scheme, and the process could take several months to complete. Among the requirements are:
More than 70,000 homeowners adopt reverse mortgages each year from the hundreds of lenders who participate in the government-regulated reverse mortgage program. But each has their own rates and processes. That’s why it’s imperative that homeowners shop around for competitive rates, and only partner with a trusted lender. The best way to do both is to work with a company like LendingTree who has partners with the nation’s best reverse mortgage lenders. LendingTree works with reputable lenders nationwide, making banks compete for your business to get you the best results.
Select your state from the map below to start the quiz to see if you are eligible. The offer is free, and provided without obligation.
