Who Should Consider a Reverse Mortgage?
mortgages are a convenient way for senior citizens to get the money
they need. They allow seniors to use the equity they have in their
homes to borrow money. But unlike a traditional mortgage or home equity
loan, they are not required to make monthly payments until the loan is
paid in full. The loan is not due until the homeowner moves, sells the
house, or dies.
reverse mortgage usually leaves the recipient’s estate owing money when
he passes away. In most cases, the house must be sold to repay the
loan. The remainder of the money goes to the deceased’s estate. Because
of this, a reverse mortgage may not be a good idea if you are intent on
leaving your home to your children or other heirs.
who should consider a reverse mortgage? If you don’t mind leaving the
debt to your estate along with the prospect of selling your home to pay
it off, a reverse mortgage could be the answer to any financial needs
you may have.
are reverse mortgage programs that pay out in lump sums, monthly
payments, and lines of credit, making them one of the most flexible
ways for senior citizens to borrow money. The funds can be used in any
way the recipient wishes. Here are some reasons to consider the
different types of reverse mortgages:
- Monthly payment –
A reverse mortgage in which the proceeds are paid in monthly payments
provides a great way to supplement your income. If you are having
trouble making ends meet, this type of reverse mortgage could be just
what you need. Monthly payments are also good if you have monthly
health care costs or need an item that is billed by the month, such as
a cell phone.
- Lump sum –
A lump sum can be a solution to a large and unexpected expense, such as
a family burial. It can also help if you need or want to buy a new car
or other expensive item. You could use it to consolidate debt or pay
off your existing mortgage. You could even get a lump sum reverse
mortgage to take that vacation you’ve been dreaming of.
- Line of credit –
A reverse mortgage that pays out in a line of credit can be used for
lots of things. Since you only have to pay back the money you actually
get out, it can also minimize the amount of home equity you lose and
the amount of debt you incur. The flexibility of a line of credit lends
itself to almost anything you need to use it for. If you need help with
yearly expenses such as insurance premiums or property taxes, the line
of credit may be your best bet.
you can see, the proceeds from a reverse mortgage can be used in many
different ways. If you are 62 or older, have sufficient equity in your
home, and have any type of financial need, a reverse mortgage is worthy
of consideration. If
you would like more information about the reverse mortgage process and
how it can help you live out your retirement without the stress of
financial burdens please call me or one of my team members at
877-787-1003 or send an email here: email@example.com
We will be
happy to provide a complete complimentary analysis of the amount of
money you could expect to receive from the best available products.
James Barath, CMA, CMPS