Seniors are perhaps the least likely to take on a "home modification" project. Yet they are the ones who could most benefit from these kinds of upgrades and improvements, to make their homes more energy-efficient and free of the physical barriers that cause injuries and falls. But the challenge of making your house ready for winter or senior-friendly is finding a way to pay for these modifications without busting the budget.
 
A growing number of seniors are solving this challenge by using an important financial security tool called a reverse mortgage to obtain extra cash to pay for energy conservation improvements, new furnaces, and important home modifications—as well as other purposes. Home modifications are devices and physical alterations—ramps and grab-bars, conversion of first-floor rooms to bedrooms, wider doorways, or lowering of kitchen cabinets to make them more reachable—that make homes safer and more comfortable for older Americans to live in, so they can remain independent and avoid injury.
 
A reverse mortgage is a special type of loan available nationwide to older homeowners (62+) that enables them to convert part of the equity in their homes into tax-free income, without selling the home, giving up title, or taking on a new monthly mortgage payment. Borrowers may spend the loan funds however they wish, and can take out the loan as a line of credit, lump-sum payment, fixed monthly payments, or a combination. The loan size depends on the borrower's age and other factors, and the loan doesn't have to be repaid until the borrower moves out of their home permanently.
 
NRMLA's free consumer booklet on reverse mortgages, “Just the FAQs: Answers to Common Questions About Reverse Mortgages,” may be ordered by phone, 1-866-264-4466 (toll-free), or on NRMLA's web site at http://www.reversemortgage.org. The web site also has a list of reverse mortgage lenders nationwide.

NRMLA is a national nonprofit trade association whose members make 90 percent of all reverse mortgages in the U.S., and all reverse mortgages in Canada.
 
Source: (c) 2002 National Reverse Mortgage Lenders Association. All rights reserved. November 21, 2002

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January 2003