Are you a senior homeowner who is concerned about the rising cost of healthcare and trying to supplement your retirement income? A reverse mortgage is a unique loan that allows you to take out equity from your home to increase your retirement fund, and could ultimately help you pay for healthcare costs in retirement. If you are looking for a way to boost your retirement finances in the regions of Hawaii, Florida, California, Washington, Illinois, or Ohio, contact Dan Turner with Geneva Financial. We can help you determine if a reverse mortgage could be a viable option for you as a way to finance your home and supplement your healthcare costs.

What Is A Reverse Mortgage?

A reverse mortgage is a loan for people 62 years of age or older that allows borrowers to access a part of their home equity without having to pay monthly mortgage fees. The borrower may choose to receive the equity as a lump sum of money, a line of credit, or in structured monthly payments. A borrower can use these funds to supplement their income however they wish, for example some use it for home improvements, debt consolidation, or living expenses. However, with the rising cost of healthcare for retirees, many people opt to use the excess money from a reverse mortgage for healthcare costs.

Medicare and Reverse Mortgage

A reverse mortgage can be a source of savings that can help seniors cover medical costs during retirement, there are no restrictions on how to use the extra money from the loan. The revenue from the loan could be used as a resource for a future or impending medical expense, or it could be used to purchase a long-term healthcare plan. Medicare is a federal medical healthcare insurance program that is widely used amongst people 65 years or older. The proceeds from a reverse mortgage will not generally impact your Medicare benefits. It is important to note, however that a reverse mortgage can affect your eligibility for Medicaid, (a government-sponsored program that provides healthcare for low income clients), because it is based on your current financial situation. Therefore, the monetary amount of the loan from the mortgage could affect your Medicaid qualifications.

Qualifications for a Reverse Mortgage Loan

If you think that a reverse mortgage could help you to supplement your healthcare costs, there are some requirements to consider for this type of loan, including:

• You must be 62 years of age or older
• You must own your home or have a large amount paid off already
• You must live in the home as your primary residence
• You must still pay taxes, homeowner’s insurance, and other housing maintenance fees
• You cannot be delinquent on any federal loans

Getting Assistance With a Reverse Mortgage

A reverse mortgage is not always the right option for everyone, but if the circumstances are favorable, it can be a great way to supplement your retirement income. Dan Turner, with Geneva Financial, can help you better understand your reverse mortgage loan options, and help you decide if it is the right financing choice for you. If you have loan questions and are located in Hawaii, Florida, California, Washington, Illinois, or Ohio, contact us today for a consultation.