If you have been considering getting a reverse mortgage, below is information about what this is. You will also find information below about two ways you can use the money you get from the reverse mortgage. You can then decide if this would be something right for you.
Reverse Mortgage
In order to get a reverse mortgage there are requirements you must follow. For example, you must be at least 62 years of age and own your home. If you do not fully own your home, the balance on the home must be low enough that you could pay off the mortgage quickly.
The lender you choose will offer you a reverse mortgage loan based on what your home is worth. You do not have to make any monthly payments on the loan while you are living. Because of this, the total owed goes up over time instead of becoming less.
You can live in the home as long as the home insurance and property taxes are made each year. Any type of repairs also must be made promptly. When the person that owns the home passes away, the home then goes back to the lender for payment of the loan. If you have a spouse that is listed as a co-borrower, they can keep the home until they pass away.
If preferred, someone else in the family could pay off the reverse mortgage balance and keep the home in the family.
Ways to Use Money from the Reverse Mortgage
If you decide to get a reverse mortgage, you will have access to the money you are offered. You can choose to get all the money at once, pay yourself a monthly payment, or keep the money in an account to use as a line of credit.
No matter how you set this up, you can use the money for any type of home repairs. For example, because you are getting older you may need to make some changes around your home. For example, if anyone in the home has a handicap, you should add safety features to the bathroom, such as handrails in the bathtub and by the toilet. If there is hardwood flooring, you may want to consider carpet if there is someone in the home that may fall.
Medical bills can add up as people get older, and if you or anyone else in your family have any medical conditions, you may have more medical bills than you can pay. If so, you can use money from the reverse mortgage to pay off these bills. You can then put some money into an account to use to pay off future medical bills.
Talk to a reverse mortgage lender like Senior Mortgage Solutions, and they can give you much more information about this type of loan.
Share24 August 2018
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