It is important to be aware of all of the possibilities that exist when you are planning ahead for the latter stages of your life. Some people may find that they are in need of liquidity during their retirement years, and one option that is available to homeowners is a home equity conversion mortgage.
The way that it works is the lender pays you either incrementally, in a lump sum, or on an as-needed basis. In return this lender obtains equity in your home.
To qualify for a home equity conversion mortgage you must be 62 years of age or older and either own your home outright or have a significant amount of equity in it. There is no credit check or income requirement because you are not being asked to pay anything out-of-pocket.
The loan becomes due when the borrower decides to move voluntarily or upon his or her passing. Many people will sell the home to pay the mortgage debt and keep any remainder that may exist.
These are reverse mortgages that are federally supported so they are legitimate. It should however be noted that there are costs involved including origination fees and interest so you should examine all the details carefully before taking out one of these loans.
Most people are going to have to stick to an intelligently conceived long-term financial plan if they are going to retire in true comfort. If you would like to discuss your future with a professional, simply take a moment to arrange for a consultation with a good Cleveland OH retirement planning lawyer.