Is Now the Time for a Reverse Mortgage?

You are seriously considering retiring in the near future, but with today’s unpredictable economic times, you are wondering if this is a feasible option for you.  If you are age 62 or older and you own your own home, there just might be a way for you to survive your “wonder years”!  You just might want to consider a senior reverse mortgage as a way to meet your goals.

I know you are thinking, “How is this possible”?  It is easier than you think to obtain a reverse mortgage on the home that you own.  There are many advantages for you to consider, especially the most important one, which is that you will have no monthly payments!  By eliminating your monthly mortgage payment, you will be able to spend your additional funds in any way that you choose.  The reverse mortgage that you receive from your lender will not be due until you actually vacate your home, meaning you can still live there for many, many years.

You may be asking if there are certain restrictions on the types of homes that are necessary for obtaining a reverse mortgage.  The most important thing to remember is that the reverse mortgage plan is only available on the borrower’s primary residence.  This means that the borrower must live there for the majority of the year.  Another factor is that most reverse mortgage programs are available for single family, one-unit homes but there are a limited number of programs that can be obtained for two-to-four unit buildings that are occupied by the owner.  And, it is sometimes possible to obtain reverse mortgages on manufactured homes and condominiums build after June 1976.  It’s easy to find out if your home is eligible by contacting a financial representative from the institution you select. 

Okay, so you feel you will be able to qualify for a senior reverse mortgage.  What other things do you need to consider?  Your heirs are important to you and you may be wondering if there will be anything left for them if you choose to obtain a reverse mortgage on your home.  Upon selling your home or when you no longer use it as your primary residence, you will be required to repay the lender for any cash you received from the reverse mortgage plus other costs such as interest and service fees.  The remaining equity goes to you or to your heirs.  Your other assets will be safe and will not be lessened by the amount of your reverse mortgage. 

Many people today are going the senior reverse mortgage route because it is the only option they have to secure their financial future.  Take the time today to investigate your options and you may be pleasantly surprised on how simple it is to look forward to stress-free retirement years.