Is a Reverse Mortgage Right for You?
People who live on a fixed income often find themselves in situations where money is tight. In these moments, a reverse mortgage might help them to get by.
A reverse mortgage is essentially a home equity loan specifically for senior homeowners. There are many different benefits to getting a reverse mortgage, including the fact that it doesn’t require you to make mortgage payments every month.
We’ve put together all the tools you need to qualify for a reverse mortgage and see whether it’s right for you.
Who qualifies for a reverse mortgage?
The following criteria must be met to qualify for a reverse mortgage:
- You must be a senior citizen age 62 or older
- You must have equity in the home – either a small mortgage, or owning the home outright
What can the money be used for?
You can use the money from your reverse mortgage however you please, but the following are a couple ways retirees typically use the money:
- To provide themselves with a supplemental income
- Take care of health care costs
- Pay for improvements to their homes
- Pay off existing debts
Reverse Mortgage Pros and Cons
With a reverse mortgage, you don’t have to make payments every month. You can use the money from your reverse mortgage however you choose, including to pay off your current mortgage. You can also just use the money to supplement your current income.
However, there are some cons that you ought to take into consideration. There could be closing costs or other fees, and you must be certain to pay your property taxes as well as your homeowners insurance. If you’re looking to pass the home down to your next of kin, a reverse mortgage could be risky.
Where Southern Home Loans comes in…
We have the experts and the tools needed to help you to make a good decision regarding a reverse mortgage. We can not only help you to see whether you qualify, but we can also help you decide whether such a loan would be right for you.