How to Know if a Reverse Mortgage is Right for You
You may have heard about a reverse mortgage before, but don’t necessarily know what it is or what the potential benefits are. There are plenty of misconceptions out there, so you aren’t alone if you don’t have a full understanding of the concept. Many people think it’s a last effort to bring in money, but there are several different strategies as well. Here are some concepts to consider about a reverse mortgage and how it could potentially be a right fit for you.
Use Home Equity While Living in The Home
A common theme today for people at retirement age is realizing they may not have as much money in their investment accounts as they thought. One of the biggest assets many people have is their home. So instead of selling the home and downgrading in order to get the extra cash, a reverse mortgage could be a viable option. If you have a significant amount of home equity, you can tap into some of it in order to receive cash without having to sell the home. It’s an attractive option for seniors who need additional income, but are completely happy with where they live.
Eliminate Your Mortgage or Take Care of Financial Problems
The burden of monthly mortgage payments can get overwhelming. Sometimes a reverse mortgage can make sense to relieve those payments. The repayment for a reverse mortgage isn’t like a common real estate loan, and is typically deferred until the time when the homeowner passes away, stops living in the home or sells the home. Not having to worry about monthly mortgage payments can also give you the opportunity to take care of other financial concerns, like healthcare bills, credit card debt and any other debt hanging over you.
Allow Other Investments To Continue Growing
When you need more cash, but don’t want to tap into your long-term investment accounts right away, a reverse mortgage can provide a bit of a cushion. Depending on the amount of home equity you have, you can potentially live off of the cash for a few more years, while allowing your other investments to grow. There are many options available, and a reverse mortgage offers flexibility to diversify your portfolio.
Commercial Mortgage Connection specializes in reverse mortgages and always looks forward to helping clients get the perfect loan for their situation. What makes us unique is we work closely with private lenders and can customize any loan to best suit your specific needs and interests. With the relationship we have with these private lenders, our clients can have peace of mind knowing they are getting the best possible solution for their situation. To learn more about reverse mortgages and whether one may be right for you, contact us to schedule a consultation.