You may be familiar with a traditional mortgage, but do you understand a reverse mortgage? The reverse mortgage – as its name implies – does the opposite of a regular home mortgage. Rather than paying monthly bills over an extended period as you would with a typical mortgage, getting a reverse mortgage will allow you to eliminate your current mortgage payments and receive money in the form of monthly payments, a lump sum, or a line of credit. But just as with a traditional mortgage, you still are responsible for paying property taxes, homeowners insurance, and home maintenance costs.
The reverse mortgage is a flexible financial tool that may enable you to accomplish your financial and personal goals. Read on to discover the advantages of a reverse mortgage. But first, let’s take a look at requirements for the loan.
Do You Qualify?
In order to qualify for a reverse mortgage, borrowers must be homeowners who are 62 years of age or older and reside in their home as a primary residence.
Keep in mind that a spouse who is not yet age 62 can still be included on the loan as a non-borrowing spouse. Thanks to the Federal government’s Reverse Mortgage Stability Act, non-borrowing spouses are able to remain in the home even after the borrower has passed.
Perks of a Reverse Mortgage
A reverse mortgage can provide an extra layer of financial security that you can use to accomplish all kinds of goals. There are a variety of reverse mortgage products to better fit each individual’s goals. Depending on which product you choose, a reverse mortgage can help you:
- Build a safety net for unexpected costs
- Defer the use of other retirement assets
- Supplement your income
- Purchase a new home
- Keep a growing line of credit if you do not withdraw funds right away
No matter what your financial goal or what product you choose, there are a number of perks that come with any reverse mortgage. With a reverse mortgage, you remain the owner of your home and there are no monthly payments required with a reverse mortgage. However, remember that you still have to pay property taxes, homeowners insurance, and home maintenance costs
If you think that you meet the requirements and are interested in learning more, give one of our licensed specialists a call to see if you qualify. They can answer your questions and send you a free informational kit.