The Benefits of a Reverse Mortgage

A reverse mortgage can be an effective tool to help you have a comfortable and fulfilling retirement. The amount of the loan is based on the value of the home, and it generally doesn’t have to be repaid for as long as you own your property. Let’s look at some of the benefits of applying for this type of home equity advance.

You Don’t Pay Taxes on the Money

Since reverse mortgage payments are considered to be an advance, you won’t have to pay income taxes on them. This can make it easier to pay medical expenses, travel or otherwise make ends during your retirement years. Furthermore, these payments generally don’t have any impact on your eligibility for government benefits as you get older. However, you don’t get to deduct any interest on your reverse mortgage loan until that interest is paid to the lender.

You Retain Ownership in the Home

Perhaps the best reason to consider a reverse mortgage is that you retain ownership of the property. Therefore, you don’t have to worry about being homeless because you couldn’t afford a loan payment. It is important to note that you do still have to pay your homeowners insurance premium, taxes and other costs to maintain the property. However, it can be easier than having to put a home on the market and hope that it sells for the right price.

Most Lenders Can Help You Learn More

You can learn more about reverse mortgages in Las Vegas by talking to a lender or other financial professional. It may also be a good idea to speak with an estate planning professional to gain more insight into how it could impact the inheritance that children or grandchildren may receive.