If you’re starting to enter your golden years, money can be tight. You might find your funds significantly reduced, shifting to a fixed income that relies heavily on your pension as well as on social security. If you don’t have enough to pay for medical bills or property taxes, a reverse mortgage for senior homeowners offers you a way to solve your financial problems with your home equity.
Advantages
* You can convert part of your property’s equity into cash. That means it’s possible to borrow bigger funds if you have more equity in your home.
* You won’t have to move out. You can age in the comfort and peace of your home.
* You won’t have to pay a single cent of the loan for as long as you live. There’s no need to stress yourself out over how to come up with monthly payments, which is what you’d get with a traditional mortgage.
* Your financial security improves. The funds you get through the loan provide you the financial means to pay off major repairs to your home, along with other major expenses. If you have flood insurance, property taxes, and medical bills, all those costs add up and can drain your bank account dry. This mortgage offers you a way to stay afloat and keep up with the payments without having to significantly downsize your lifestyle or severely compromise your living conditions.
Reminders
The only way you’ll lose your home is if you fail to do any of the following:
* Follow all terms of the loan
* Keep up with your homeowner’s insurance payments
* Skip paying your property taxes
If this loan sounds like a good move for you, then explore this in depth. Ask around. If you think this is the right financial tool for you, consult an independent housing counseling agency or HECM lender for more details.
