At age 29, I’m praying a lot about our future. I pray that we’ll have long, enjoyable life and a debt-free life! We’ll able to see our kid/kids grow up, established their chosen careers, have their own happy family and we’ll be the family that God wants us to be- a family that prays together and stays together .

If God will allow that we’ll reach 62 years, we’ll apply for reverse mortgage. I read some Information on reverse mortgage that it’s a loan against the equity in our home. Unlike a traditional mortgage or a home equity loan, there are no income or credit requirements with a reverse mortgage. The greatest benefit to us is that we have no monthly payments or interest payments on the money we receive — as long as we continue to use our home as our primary residence.

What will we do with the funds if ever we apply for reverse mortgage? We can use the funds any way we want without worrying what would be its effect on our social security, income taxes or medicare. We could use the fund for home repair or buy a second home, pay for a long-term care expenses or just to improve the cash flow to maintain current quality life.

Now that we know where would we like our funds to go, you may wonder how does a reverse mortgage work? This kind of mortgage is designed for seniors only- the youngest borrower must be 62 years old or older . Reverse mortgage is a loan that allows the homeowner to convert some of the equity in their home into cash or monthly income, while retaining home ownership. Reverse mortgages work much like traditional mortgages, only in reverse. Rather than making a payment to the lender each month, the lender pays the borrower. All persons on the title must be at least 62 years old (as I have mentioned) and occupy the home as their principal residence. You must own your home “free and clear” or have a very small mortgage balance. Income is not required to qualify. Reverse mortgages do not have to be paid back until the last surviving borrower dies, sells the home, or moves out. The total amount owed at the end of the loan equals all of the cash advances you’ve received, plus the accrued interest.

Still unclear for you? You may visit reverse mortgage FAQS for more clarification and information. I wonder if this kind of loan is already a trend in the Philippines. I’m sure my grannies would qualify. I better inform them now!

(photo credit: http://www.sandpointrainbowrealty.com/home/?p=53)