For seniors over the age of 62 a Reverse Mortgage is a tool that, while new to many, is increasingly being used to maximize their retirement income. A Reverse Mortgage frees up large amounts of equity to be used in investment vehicles, insurance policies, and savings plans that add to the safety and enjoyment of many seniors' lives.

Many people are now looking to use this great tool to secure their futures in the event of an accident or event that will require nursing care. For most seniors the thought of entering a nursing home is a scary one, however, the facts do not lie. Many seniors will have to either enter a nursing facility or receive substantial home health care. When faced with these two choices the answer becomes very easy. We would all prefer to live in our own homes and the Reverse Mortgage is a dynamic way to produce the funds needed for the best possible care.

Reverse Mortgages are a very safe way for seniors to release the equity trapped in their homes. A Reverse Mortgage is a Federally regulated and insured loan that uses home value and age as a calculator to extract a portion of the equity that seniors have built in their homes. A good way to estimate the amount that can be received is to subtract the amount of purchase price and current mortgage from the estimated sale value. This is the equity that can be reasonably expected to be obtained with a Reverse Mortgage.

The differences between a Reverse Mortgage and a standard equity loan are that the Reverse Mortgage NEVER requires the senior to make a monthly payment. For as long as the applicant lives in the home, there are no payments required. All of the money that is generated with a Reverse Mortgage is 100% tax-free and will not affect any social security or Medicare benefits.

With this money, a senior can do several things to ensure that they are comfortable and secure in their golden years. A long-term care policy with a home health care feature may be purchased to ensure that the best care available will be an option. An annuity with a health care rider can be secured to allow the senior to position their funds in a way that will guarantee interest growth as well as protect the investment in the event it is not needed for long term care. These are a few ways to use a Reverse Mortgage to protect yourself, you home, and your peace of mind in a time where friends, family, and contentment are paramount, and the last thing anyone needs is a tragedy jeopardizing the future.

About the Author
Troy Shellhammer is loan consultant with Reverse Mortgage Nation, a Reverse Mortgage Lender, providing reverse mortgages, home equity conversion mortgages (hecm), support, counseling, and nationwide Reverse Mortgage Services.