From its initial inception in 1961, the reverse mortgage has evolved into a safe and viable financial option for consumers 62 and older to consider as part of their retirement portfolio. From the misconceptions in the community to the television commercials, consumers are often left with a less than desirable picture of what a reverse mortgage really is and how it works.
So, what is a reverse mortgage? Simply put it is a government-insured loan option for people age 62 and older that allows you to tap into the equity you’ve already built in your home. It provides funds to help pay for things you want or need. Unlike conventional mortgages or home equity loans, there are no monthly mortgage payments. However, for the loan to remain in good standing, you must continue to pay property taxes and homeowners insurance, and keep the home in good repair. The loan must be repaid when you sell the home or no longer live there as your primary residence and is usually accomplished with the proceeds from the sale of the home.
How can I use the money?
As an alternative to a Home Equity Line of Credit
Supplement your retirement income to help preserve your savings
Pay off your existing mortgage to free up more cash each month
Generate funds to help cover every day (or unplanned) expenses
Cover health care costs
Make home renovations or upgrades
Fund a major purchase, such as a new home or vehicle
In my years of assisting homeowners, the option to become mortgage payment-free has relieved the stress when a couple is facing the potential loss of income due to the loss of a spouse. Gail and Bob of Sun City West reached out to me because they knew if one of them passed away the other would not be able to survive on one income and remain in their home with a mortgage payment. With the reverse mortgage, we could eliminate the monthly payment responsibility and allow them to save that money each month while they were still collecting two incomes and begin preparing for when the time comes that they must live on one income. Their desire was to remain in their home and age in place. They found the process to be easier to understand than they had originally thought and were put at ease once they discovered the truth about the product.
Don’t wait to find out how a reverse mortgage can change your life.
I’m a local loan originator dedicated to helping people just like you. I can be reached for a free consultation at 480-209-9524 or by email at firstname.lastname@example.org. Let me help you plan before you have to and retire like you mean it.
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