It’s human nature to worry about finances, but as the recession continues to haunt our lives our concerns are increasing; especially those of us in our senior years, retired and living on limited incomes. With the current state of the economy, now might be the time to gain access to additional financial resources through effective asset management to unlock equity and leverage your home.

There are many major lenders and institutions beginning to encourage seniors in this increasingly common practice. Older adults who have already paid off their home mortgages, can leverage the equity in their homes by re-mortgaging or financing to get the money they need to pay for medical bills, assist family members to pay for education costs, or to complete much needed renovations in their own homes.

Reverse mortgages are another option and are HUD backed.

Maintain Your Independence

A reverse mortgage can give you access to your home equity without having to make monthly loan payments.  Instead, you receive tax-free loan proceeds that will not affect Social Security or Medicare benefits.
You can choose any combination of these flexible payout options at closing:

.  A lump sum to cover large expenses
.  Monthly installments to supplement income
.  A line of credit to draw on as needed

And you can change how you receive proceeds as often as your needs change during the loan term.

Secure Your Financial Future

There are no income, employment or credit requirements.  The amount you can qualify for is based on your age, your home’s value, its location, and current interest rates.

.  You keep title and ownership of your home
.  You continue to pay property taxes and insurance
.  The amount you owe can never exceed the home’s value.

Funds received during your loan term, and interest, become due and payable by you or your estate when you sell or permanently leave your home. The home itself-and remaining equity-belongs to you or your heirs.

Thanks to Wells Fargo Reverse Mortgage Solutions for providing this information.