House Mortgage and Retirement Plans and How They Come Together

By:Wayne Miller

And with appreciation, that home may be worth twice or three times what you paid for it and you have all the equity from those years of house payments. Therefore, in addition to the joy you have had living in that house and raising your family there, that house is also can be a big part of your retirement planning as well.

It used to be that to take advantage of that equity when you enter retirement, you either had to sell the house and go live in a nursing home or retirement community or you took out a new mortgage borrowing against the equity and you find yourself paying huge interest payments all over again.

But a new kind of mortgage called the reverse mortgage is now available so a senior citizen who is preparing for retirement can begin to realize some of that equity as capital and not have to take on a loan payment or move out of their home. This innovative new program allows you to set up the equivalent of a home equity loan but instead of getting a huge lump sum, you can have the equity sent to you in the form of monthly payments so the equity of your home can actually become part of your monthly budget to supplement Social Security or other retirement funds.

What is great about the reverse mortgage type of financial vehicle is that you are never required to pay back the loan of the money that is based on your equity. The only time that loan amount would be required of you would be if you moved, sold the house or passed away in which case the sale of the house would realize the equity to retire the loan. In other words, if you take out $100,000 from your home for medical costs or just to finance a comfortable retirement living, you are not called upon to pay back that money and you can continue to live in the house for as long as you want to.

This is a phenomenal arrangement that seems tailor made for senior who want to enjoy their retirement years without financial worries and do so living in the house where they raised their children and a home that has become so precious to them. For children of a retiring parent, the reverse mortgage is a godsend because mom or dad can stay in their own home where they are happiest. And if they can keep the old homestead, the whole family will continue to enjoy coming to visit there, seeing the grandkids run and play in the same yard they grew up in and having holidays there as well.

Like some of the best programs for retiring persons, the reverse mortgage was originally put together by the US. Department of Housing and Urban renewal. It is not often that the government gets something right but they hit one out of the ball park with the reverse mortgage. It is a program and provides federally insured funds to seniors so they can supplement their income in a safe way that allows them to use the equity of their home for their retirement comfort without ever having to give up that home. And because the money coming out of a reverse mortgage is technically a loan, you never have to pay taxes on that money which is another big financial blessing.
The reverse mortgage is an option worth considering as part of retirement planning. It gives seniors one more option for keeping their homes. And that is good for everybody.

Digg del.icio.us Blink Stumble Spurl Reddit Netscape Furl

Article keywords: wealth building, investments, house mortgage, investor in real estate

Article Source: http://www.articles2k.com

Wayne Miller has written two e-books and has traded serious money inside different stock and commodity markets. One is called The US Financial Crisis of 2007-2008 and the other e-book is called Opportunity of a Lifetime. Top Ten Books Blog for Top Ten Book

Top Financial Planning Articles
1). Inflation - The Slayer of Your Savings By : Chris Cooper Since inflation consistanly erodes the buying power of our money, our investments have to exceed the inflation rate or we will outlive our money.
2). Officially Licensed Products Give A Kick To Your Youth Or School Fundraiser By : D. David Dugan Fundraisers have changed somewhat from when I was a kid. We sold one thing and one thing only, candy. Candy for the school basketball team, candy for the local baseball league and yes, candy for the football team too. Don’t get me wrong, it was good candy, but we didn’t have the choices today’s organizations do. Everything imaginable is generating funds for our children’s sports these days.
3). Fundraising Ideas: Keep It Safe By : Kimberly Reynolds When your youth group is doing a fundraiser, it is imperative to make sure that the proper safety precautions are followed. Never allow door-to-door sales without direct adult supervision. Period. In a sad case, an 11-year-old boy selling candy for a PTA fundraiser came to the door of a 15-year-old boy who was home alone at the time. The youngster was invited inside, sexually molested, and then murdered.
4). Fundraising For Youth Groups By : D. David Dugan Youth Groups are almost always in need of funds. Holding fundraisers to finance important trips like tournaments, museums, and musical events are just some of the needs that have to be met through fundraising. Others include the need for uniforms, sports equipment, art supplies, musical instruments, and more. There are a lot of different ways your youth group can raise the funds they need.
5). What Are My Investment Choices For Retirement Planning? By : Richard Callaby Investing for retirement may not seem important yet for someone who is still in their early age. But once that age of retirement is reached, then you will feel the need to do so. It might be too late then as you will not get the most out of your investments anymore.
6). Getting the Best Return on Investment for your Fundraiser By : Kimberly Reynolds Return On Investment (ROI) is a fundamental business concept. Its also something that every fundraiser needs to take into consideration. A business investment consists of working capital, physical assets, and peoples time. ROI is the net gain that results from a business spending money and utilizing physical assets, along with the expenditure of employees' time, in an effort to produce tangible profits.
7). New And Unusual Fundraising Ideas By : Steve Gillman Need some new fundraising ideas? When your organization or group needs to raise money for a trip or project, there's nothing wrong with another bake sale. Do something a little different, though, and you may get more volunteers for the event. You might also get more media exposure, meaning more people will participate, which means more money raised.
8). Car Wash Fundraiser Ideas By : Kimberly Reynolds Car wash fundraisers are a proven money-maker in virtually every community. All you need are willing volunteers, a high-traffic location with good visibility, and some attention getting signs. You can put a car wash fundraiser together on short notice, but they work best with a little planning. Here's how to get started... Things To Do List 1- Line.
9). How to Avoid Car Financing Pitfalls By : Joseph Kenny If you are considering the purchase of your first car or even your next vehicle if you’re not a first time car buyer, you may be concerned about the prospect of financing your vehicle. This concern is not totally unfounded.
10). Stock Market Trading By : Sandro Azzopardi The stock market offers various opportunities for trading. Apart from the main securities, which one can trade on various exchanges like the New York Stock Exchange and Nasdaq, there are other forms of trading like forex trading, currency trading and ‘contracts for difference’ also known as CFDs.

New Financial Planning Articles
1). How To Get Your Personal Finances In Order By : Gaetane Ross When you think about personal finances, what do you think of first? Which aspects of personal finances are important, which are essential, and which ones can you take or leave? You be the judge.
2). Past Tense Pitfalls By : Kemberly Wardlaw Creating an Investment Policy and Moving Forward after a Loss.
3). Setting and Achieving Your Financial Goals By : Marjorie Salada Financial goals are something you are going to want to put in writing and at some point in time and if you have a partner, they should do the same. If you have a partner you are going to want to discuss your goals together to see how compatible these goals and desires are. If they are completely different, you will need to find a common ground that is going to work for both of you.
4). Little Known Ways to Save Money for College By : Dave Poon One of the phrases that parents dread the most is this: college money. As soon as their child is born, parents tend to think about the future and actually make plans for their kids.
5). Save Money With A Mortgage Calculator By : Keith George It is very important to base important mortgage loan decisions on sound calculations. Most loan calculators will enable you to do that.
6). Personal Statement for College: An Investment for your Future By : Dave Poon You have heard it a thousand times over: how education is one of the most important things that you should invest in for your future.
7). What You Should Know About a 401k By : Heather Colman A 401k is a good place to start in planning for your future retirement, no matter how far away you may be from the actual time.
8). Stock Market Prediction By : Sandro Azzopardi Predicting the stock market has always been a fascinating science. It can be done in different shapes and forms.
9). Stock Market Trading By : Sandro Azzopardi The stock market offers various opportunities for trading. Apart from the main securities, which one can trade on various exchanges like the New York Stock Exchange and Nasdaq, there are other forms of trading like forex trading, currency trading and ‘contracts for difference’ also known as CFDs.
10). Stock Market for Dummy By : Sandro Azzopardi It is not easy to start trading on the stock market when you have no financial background at all. It shouldn’t be difficult to prosper, though, if you follow certain guidelines. Being organized and disciplined are two very important factors in this business. Don’t let all the information you gather confuse you. Make sure important decisions are taken before you start risking your money.