Aid and Attendance (A&A) is an increased monthly pension amount paid if you meet one of the conditions below:
Housebound is an increased monthly pension amount paid if you are substantially confined to your immediate premises because of a permanent disability.
Telling your children or even your spouse that you need to tap into your home’s equity can feel like you’ve failed them. Fortunately, In many cases, family members offer to help, making a reverse mortgage unnecessary. While others get confirmation to go ahead and use the money for whatever they need.
Credit cards are an easy cheap to cover short term debts and they can be used over and over and there are no liens against your house to secure the debt. However, credit cards can be a financial trap. Eventually the credit limit will be reached, a late payment occurs, and the credit card rate can go out of control. Your credit limit can suddenly be reduced making your hardship worse.
HELOCs are less expensive to obtain than other types of mortgages, are typically interest only for a specific period of time and you may be able to tap into more equity than a reverse mortgage. They are open ended making the line of credit reusable as the principle is paid off.
Income and credit qualification standards are higher for approval.
The more you draw, the more you pay. Payments become larger and larger the more you use the line, making it necessary to draw more and more money each month. The full loan could be due after the initial interest only term with the borrower unable to refinance the debt or pay it off. This could lead to foreclosure and loss of the home.
As with credit cards, equity lines of credit can be reduced at any time if home values fall or if the lender believes your becoming a credit risk.
So there you have it. The pros and cons of the options you should consider before you speak with a reverse mortgage professional.