As the time for retirement approaches, you might be looking for ways to achieve your retirement goals. To do so, more seniors are accessing the equity in their home. One tool they are utilizing to receive these funds is a reverse mortgage. This mortgage loan is available only to homeowners’ age 62 years of age and older. Once all of the specific criteria have been met, this type of mortgage can be just the security blanket that is needed to feel comfortable and remain financially stable.
Reverse mortgages are a popular choice among seniors due to the many features not available with other loans. With these loans, you remain in your home; loan repayment is deferred and maintains ownership of the home. As with any financial decision, you should understand the pros and cons, even with the best reverse mortgage.
Remain in Your Home
After years in your home, relocating can be difficult. In your senior years, you want to be comfortable in surroundings that are familiar. This is one of the best reverse mortgage benefits. With reverse mortgages, homeowners remain living in the home while receiving equity without the burden of monthly mortgage payments.
However, the loan becomes due if the borrowers leave this residence for more than twelve months consecutively.
You Maintain Home Ownership
Home ownership remains with you, providing you honor all the terms of the loan. Many seniors believe that with a reverse mortgage their ownership would be affected. While you are still residing in the home and following your loan terms, you maintain the same freedom as before the mortgage.
While still residing in your home, homeowner’s insurance, property taxes, and repairs remain your responsibility and must be maintained according to your loan.
Deferment of Payment
Payment of your loan is deferred until the last borrower moves, passes away, or sells the home. Until that time, another best reverse mortgage benefit is no monthly payment required. This is excellent for seniors on a fixed income.
However, a lien remains on your home until paid in full due to the payment deferment. Do not find yourself in a financial bind, speak with one of our agents today.
Longbridge Financial, LLC can help you choose the best reverse mortgage options for your current situation. Contact them today!