Financial freedom - reverse mortgage - forget capital gains tax
Some people who have lived in their home for quite some time and have a lot of equity, might consider financial freedom reverse mortgage to be a good option. This allows you to benefit from the equity in your home while still living in it.
A reverse mortgage is a loan against the equity in your home, basically the equity is the collateral. To qualify for a reverse mortgage you must be at least 62 years old. You can receive the loan amount as one lump sum or as a monthly payment. The loan does not need to be repaid until you die or you move out of the home at which time the loan must be repaid in full.
One way to gain financial freedom reverse mortgage is by gaining a huge tax advantage. When you get a reverse mortgage, the loan you get is not taxable. This is a huge advantage over selling your home.
If you sold your home for a profit you would have to pay capital gains taxes on that profit. But with a reverse mortgage you get the benefit of the equity without the tax penalty.
You can repay the reverse mortgage during your lifetime if you choose. If you have taken the lump sum payment, you can make monthly payments to repay that amount. Otherwise the amount will need to be repaid upon your death by your heirs. In most cases the sale price of the home would be enough to repay the loan.
If you take out a reverse mortgage you can not lose your home, unlike with a typical mortgage. If you live in the home with the reverse mortgage and it is your principle residence, it will remain yours until you die or move into an assisted care facility. At that point your reverse mortgage will come due and may require the sale of your house.
Since you will not be likely to make enough on any investments you make with the money from your reverse mortgage to out distance the interest you are accruing, using this money to fund your investments is not usually considered to be a wise decision.
If you are 62 or over and have lived in your home for many years and have a lot of equity a reverse mortgage may allow you to have a little extra money to pay down debt or do some home improvements or traveling. The money you get from these loans is yours to with with as you see fit, there are no regulations on what you can or can not do with it.
Gaining financial freedom reverse mortgage loan can be a good idea if you use the money to pay down debt or make some much needed improvements to your home. Just remember that the interest rate you will be charged along with the principle will have to be paid back so you should try to find the best way to put it to work for you.
TAGS: financial freedom
Article Source: Messaggiamo.Com
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