In my last newsletter, the NW Way of Life News, which I mail out to about 200 households every other month or so, I shared 3 specific financial areas to audit, thereby reducing your monthly expenses. I re-published those tips on the blog as Ninja Money Hacks.
The response I got from that newsletter article was OVERWHELMING. No less than two dozen different readers contacted me to ask for referrals for insurance and mortgage refinance.
What I take from the response is that, more than ever, PEOPLE ARE TAKING THEIR MONEY SERIOUSLY!!!
And this is such a great thing. Recession or not, one thing I’ve learned — finally, at 40 years old — is this: Take good care of your money, and your money will take good care of you.
I’ve decided, then, for my next newsletter, which is due out in about a week, to research and write about Reverse Mortgages. Now, these aren’t for everyone. You need to be 62 years old to qualify, live in your own home, have equity in it, and a few other factors.
But everyone has family, or knows someone, who could benefit from knowing the basics about reverse mortgages. Basically, reverse mortgages are a way to make your home pay you, instead of you paying for your home.
That’s right: You set up a this “loan” that distributes payments (or a lump sum, or a line of credit, or a combination of these) to you, that you do NOT make payments against as you’re using it — which makes it different from a home equity line of credit.
When you no longer live in the home. That is, when you sell it, or when you pass away. As long as you live in the home, you’ll never make another mortgage payment towards the home.
Sound awesome? Reverse mortgages can be awesome. But there are a few cons, too. Like, if your heirs are expecting to inherit the home or at least its equity when you die, they should keep in mind that the reverse mortgage is EATING INTO that equity. There may be none left for them if you live long enough or take out enough moolah.
There are other factors and tidbits, and I intend to become conversationally knowledgeable about these unique financing products.
Any questions? Shoot them my way. And if you’re not yet on my newsletter mailing list, you’re missing out! Send me your snail-mail address and we’ll get you going!