Will the income from the Reverse Mortgage affect my Social Security or Medicare benefits?

A crucial concern about seekinga reverse mortgage loan at the age of 62 or older is how this loan may impinge on your different types ofbenefits. It is also something that has plenty of misconceptions. These misconceptions can and do stop a few seniors from even thinking about  a reverse mortgage.

One of the main concerns is that a reverse mortgage can lower the amount of benefits or drastically lower the amount of Social Security benefits. There are financial qualifications that can be damaged when acquiring extra funds For instance, people who receive Social Security may have their Social Security amount lowered due to a sudden increase in income from other sources. Or if they qualify for financial aid to help them pay their Medicare or Medicaid costs this may change if their financial situation changes.

The good news is that you do not have to choose between keeping your Social Security, Medicare/Medicaid benefits and a reverse mortgage. A reverse mortgage loan is not like obtaining an inheritance or some other form of income.

A reverse mortgage loan comes from the equity in your home. In fact equity is not thought of asincome at all and this means it's not going to be taxed either.

Of course there are usually a few hoops that one has to jump through.. One of them is regarding Supplemental Social Security Income because in this case it can effect your benefits. There are a few ways around this situation and these little bumps. The best thing to do is to talk to your HUD approved or other reverse mortgage counselor or even the originator about working around it. You may want to talk to a tax advisor as well.

There are never too many question or questions that are too simple or stupid when it comes to taking on a new financial project. A reverse mortgage can become a very wonderful way to spend money that would otherwise be lost or remain unused. Don’t allow the unknown to prevent you from learning if this type of loan can benefit you.