Are reverse mortgages for you?
With over 10,000 Americans turning 62 daily, reverse mortgages are gaining popularity as a valuable financial planning tool. Reverse mortgages (sometimes referred to as “home equity conversion mortgages” or HECM) give age eligible homeowners the ability to tap into equity without having to sell their home. There are several options for the disposable equity you may have.
- Take a lump sum payment to consolidate debt or take a dream vacation.
- For use as monthly income to live on.
- Create a line of credit for use as you see fit.
- Simply eliminate a monthly housing payment.
Reverse Mortgages Financing
It is worth noting as well that funds can even be used to purchase a home. If you have a large down payment (40-60%) and want to enjoy a new home without a new payment, this could be a perfect home financing option for funding.
Important Reverse Mortgage Facts:
Repayment isn’t necessary until the home is sold, if the home owner moves to another home or retirement community or passes on. You or your estate representative will be required to repay the balance of the reverse mortgage, any accrued interest, and other finance fees when your home is sold or can no longer use it as your primary residence. Once the home is sold, any remaining equity will belong to you or your heirs. Please also note that your heirs will have protection if the home is sold for less than what is owed.
Because reverse mortgage holders do not have to repay the loan until the borrower is no longer using the home as their principal residence, many financial advisers have started promoting reverse mortgages to delay taking Social Security benefits. There are so many uses for a reverse mortgage. If you are a homeowner over 62 years of age, you owe it to yourself to learn more about this popular product.
Use our contact form above to learn answers to questions such as “How does a reverse mortgage work?”
Our home mortgage financing experts will work with you to discuss your situation and explore if it might the right type of loan for you.