The Easiest Way to Get the Most Out of a Reverse Mortgage
For those who are 62 years of age or older, a reverse mortgage is an excellent vehicle for tapping into the equity of your home. Whether you’re looking to simply get some extra income, cover healthcare costs, or anything else, a reverse mortgage might be right for you.
At Southern Home Loans, we make applying for a reverse mortgage as easy as 1, 2, 3. Our experience works for you to answer all your questions on this type of mortgage, whether it will work for you and, if it is, get the best possible rates.
What is a reverse mortgage?
A reverse mortgage is the opposite of a regular mortgage. When you have a regular mortgage on your home, you make payments on your home every month to the bank or lender. With a reverse mortgage, you are actually the one who gets paid.
Part of the equity on your home is taken and given to you in payments. It’s a payment in advance on your home’s equity.
So long as you continue living in your home, you won’t have to make any payments on your reverse mortgage.
Why is a reverse mortgage beneficial?
As you get older, you’re likely going to have unplanned expenses that you’ll need to cover. You might be a good candidate for a reverse mortgage if:
- You have medical costs that you’re struggling to afford
- You need help paying off your existing regular mortgage
- You want to supplement your income
- You want to perform remodels or additions to your home
A reverse mortgage can be greatly beneficial for retirees who need a little extra help to get by, as it increases their income without any immediate principle or interest payments. Our specialists can help you determine if a reverse mortgage is right for you.
Are there any downsides to a reverse mortgage?
While you won’t have to make payments on the principle or interest for as long as you’re living in your home, you will have to pay utilities, real estate taxes, and flood and hazard insurance premiums.
More importantly, however, is the fact that a reverse mortgage can use up your home’s equity. If you are planning to leave your home to your spouse or heirs, then you might consider a different type of loan, because the loan and the interest will have to be repaid before the estate is settled.
However, if there is still equity left in the home after the repayment, it will be transferred to heirs and debt won’t be transferred to heirs or the estate.
How we can help
Our experts can go over your home’s equity with you in order to help you determine whether a reverse mortgage is right for you. We’ll go over the pros and cons with you and make sure to provide you with the best option.
We also have the fastest, easiest approval process available, which means we handle all the complicated aspects so you don’t have to worry about them.