What would you do if disaster strikes during your retirement? When the doctor said you have got kidney failure because of your hypertension or diabetes mellitus. Of course you will need a lot of money for your periodical hemodialysis treatment. Day by day, your life is harder as you keep spending your savings for the treatment and medical checkup when you can not do anything to make new money even worse you don’t have any Medicare supplemental insurance to cover your acute medical care.

Fortunately, every senior homeowner (aged 62 or over can qualify) can take out a reverse mortgage to finance their crucial expenses. In fact, it is better than selling the house or taking out a conventional mortgage loan where you can lose your only one home. The loan also available in three payment options: a lump sum in cash, equity line or credit, and monthly payments. What makes a reverse mortgage becomes so special is its loan extending system. There is no monthly repayment and the borrowers can delay the pay off (extended loan) as long as they keep living in the house. The payment is including the total loan received, the initial fees, closing costs, and accrues interest charges that is due over these situations:

1. The owners sell the home
After the house is sold, the owner can use the money to pay off the debt.
2. The owners move permanently
It’s available for the lender selling the unoccupied home to pay off the debt, any debt remain will be paid by the homeowner.
3. The owners passed away
The lender can sell the house, any debt remain will be paid by their heirs. If the homeowner or their heirs want to keep the home, they can simply pay the loan in full or refinance the reverse mortgage loan into conventional mortgage loan.

In addition, the loans received from the reverse mortgages are not considered as an income, so it’s tax-free. And because the homeownership is yours, so you are responsible to your home maintenance, insurance, taxes, and other costs.