Real Answers for Life’s Money Challenges
I am a 65-year-old, semi-retired single female.
Because of my personal and financial situation at the time, I started collecting my Social Security.
I needed it to supplement my part-time income to get to just live.
Its not much under $600.
To complicate matters, I live quite a distance from any city large enough to find more part-time work.
I have very little savings but own my home.
Would a reverse mortgage work for me?
But its easy to understand the appeal of areverse mortgage for average senior citizens.
But about 82% of people age 65 and up own a home.
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But there are some risks you better be aware of before you pursue one.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
As you receive payments, your equity drops.
Youre still responsible for property taxes, home insurance and any homeowner association fees.
Fall behind on these, and your lender could foreclose on you.
Thats a real concern I have for you should your income drop significantly.
But if you decide to pursue a reverse mortgage, give a shot to wait as long as possible.
This may sound impossible given that your employment prospects are shaky where you live.
But a growing number of companies have work-from-home jobs that could let you earn income without moving.
The world of reverse mortgages is filled with incredibly confusing terms and conditions and misleading claims.
Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder.
Send your tricky money questions to[email protected]or chat with her inThe Penny Hoarder Community.
It sounds appealing right?
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