Is A Reverse Mortgage Right for Me?


A lot of people may be asking what is a reverse mortgage. Some may know it, but some don’t. Some involve themselves into this system and end up losing everything. It is very important to know everything there is to know about reverse mortgage before going into a decision that you will regret in the future. It is very important to ask yourself if there is a need to apply for this reverse mortgage.We all know that living nowadays is very hard especially for those who are retiring. Younger people still have the energy to work compared to those senior citizens whose bodies are starting to degenerate. Depending on Social Security System (SSS) benefits may not be enough to go throughout the retirement years. An average of $2000 dollars per month is a small amount to fit the everyday expenses considering other duty fees (e.g. annual monthly expenses nationwide is approximately $3000).Applying for reverse mortgage system may have pros and cons. Depending on the person, he or she may balance the benefits and disadvantages that this system brings. This way, an individual could have a clear view of the future if he or she would apply to the system. But sometimes, a person would decide irrationally especially when faced with poverty and hardships. However, that is not the only solution an individual has. He may opt to look for other assets that he or she can use.Below are lists of alternatives that each individual may opt to do:1. Look for other resources: An individual may look for substantial cash value from their life insurance plan. These may be a good source of funds that may solve the everyday expenses. People having their inheritance, may it be material or real estate, use them as an investment or sell them.2. Relocating: People who live in a very sophisticated area may opt to live in other areas where the lifestyle is much simpler. People may stretch their funds to fit the retirement years they have. A good example of which are American senior citizens going to places in Asia such as Taiwan, Vietnam, Thailand and Philippines. The lifestyle cost in those countries are low compared to that of the United States. Some are even having great houses in those countries taking only less of their savings.3. Downsizing: People having large houses and thinks that it might be too big for them may go for an average house that they could fit well. In this manner, you will decrease the annual expenses such as taxes or even unpaid mortgages.4. Sharing you home: People having big home may share them to friends, relatives or other strangers provided that they will help in monthly expenses. You can save money and you will still be in the comfort of your home. But it is better to look for individuals whom you are comfortable with.5. Selling or renting: People can sell their homes or allow others to rent them. In this way, you will be able to free your responsibilities from taxes or from needed home repairs.The reverse mortgage system is not a bad thing but it is important to consider the alternatives and know what is reverse mortgage all about. Reverse mortgage is a good boost in income if you have a lot of estates or assets.