Is a Reverse Mortgage Right for You?
Reverse mortgages may not necessarily rank among the most popular home loan options, but they do come with certain advantages for the right lender.
What is a Reverse Mortgage?
In a nutshell, a reverse mortgage is a way for older homeowners to leverage home equity in order to fund their retirement. The equity is actually relinquished in exchange for regular payments that can most definitely take the edge off of everyday living expenses that may be hard for seniors to cover otherwise. In order to qualify for a reverse mortgage, the homeowner must either already own the property free and clear (or be able to pay it off using the resulting payments) and be 62 years old (or older).
What to Keep in Mind
To be clear, there are definitely things to keep in mind when considering a reverse mortgage. Like other loans, you’ll want to watch for high-interest rates and closing costs. Also, the homeowner is still responsible for property taxes and insurance and the home must be the primary residence.
There are great advantages with a reverse mortgage, especially if you trust a mortgage lender like Sun West Mortgage with the process. A reverse mortgage allows an elderly homeowner to potentially enjoy a comfortable retirement free of worry and hardship. They also don’t have to worry about repayment so long as they continue to live in the house — definitely something to consider if you qualify.