Why Consider A Reverse Mortgage?
Why might you consider a reverse mortgage for yourself or a loved one?
Reverse mortgages, available to qualifying homeowners ages 62+, generally come with no limits on the use of the funds.
Reverse mortgage funds are first used to pay any liens on the home, including a regular mortgage or home equity loan. In some cases, a portion of proceeds is withheld or set aside to pay taxes and insurance.
Remaining funds often:
- Offset day-to-day living expenses.
- Cover emergency expenditures, such as car or home repairs.
- Pay for medical costs.
- Provide for in-home care, allowing the owner to remain in their own home longer.
Sometimes, homeowners use a reverse mortgage just to pay off their existing loan. They do not access the remaining funds at all, but they remove the strain of a monthly mortgage payment from their budget and increase their cash flow. Some seniors use reverse mortgages to purchase a new home without ever incurring a monthly payment.
Before entering an agreement, borrowers are required to attend a session with an independent certified counselor who will fully explain the reverse mortgage process, answer questions and discuss other available options.
Remember that a reverse mortgage is a loan that will be repaid after your death, after you permanently leave your home, or after the sale of your home. Neither you nor your heirs will be responsible for repaying more than the value of your home at sale.
The homeowner is responsible for paying taxes and insurance and for properly maintaining the home. The home must be used as the homeowner’s primary residence.
If you would like to explore the opportunities a reverse mortgage may present for you or your family, please give us a call. We’re here to help.