Moving Forward With Reverse Mortgages

Let me stress again: No one can force you to sell the home while you still live there. Another important note: The repayment amount can never exceed the value of your home at the time the loan is repaid. You or your heirs can never owe more than the home is worth when you die or sell it.

There are federal limits on the total size of a reverse mortgage loan, based on where you live. Currently, the caps range from $200,160 to $362,790. There is a bill making its way through Congress that would create a single, higher, national limit.

If your home is worth more than the area lending limit for a traditional reverse mortgage, you can take out a "jumbo" reverse mortgage. In that case, you'll be required to draw down the entire borrowing and put it into a money market account or other investment instead of receiving a monthly check.

Seniors considering a reverse mortgage must have independent counseling, usually given by the AARP over the phone. That means you'll have plenty of chances to ask questions.

This kind of financial independence is priceless and well deserved. Why shouldn't your house pay you back for all the money you've put into it over the years -- especially with the guarantee that you can never lose the roof over your head?

So, if you're a senior -- or if you have parents who might benefit from more monthly income -- it's time to consider a reverse mortgage. And that's The Savage Truth.

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