Enjoying your retirement means living a life that is stress-free, and without any financial burdens and worries. However, many elderly couples do find themselves in situations where retirement is costlier than expected, and the everyday bills and expenses can start to feel like more of a burden than is manageable.
Whatever your situation is, if you have equity in your home, then a reverse mortgage Ford Lauderdale could be an excellent option to help you take back your financial freedom. While a reverse mortgage is not for everyone and requires some serious consideration, it can be worth looking into if you’ve exhausted your other financial options.
If you have found yourself considering a reverse mortgage, then some of these specific scenarios might help you to know when it’s time to talk to a reverse mortgage company in Fort Lauderdale.
Equity from Your Existing Home Could Allow You to Reinvest
If you are finding that your income is not enough, then the equity from your existing home could help you to raise your income by creating a new investment. You can choose to take a reverse mortgage in an initial lump sum with future payments, or you could even choose to set up an equity pool that can be used as needed. If you choose to go for a lump sum option, then you could use your equity to purchase a rental home that then generates new income. If the projected income is enough to cover mortgage payments while also providing some surplus for living expenses, then you could come out better off in the end.
A Reverse Mortgage Can Allow You to Retire Early
Many Americans are finding themselves working well into their sixties, simply because their retirement planning has not gone as expected. Leveraging off of the equity in your home to boost your retirement income could be a good option for you. By taking a reverse mortgage Fort Lauderdale, you could have access to money for healthcare and general living expenses, allowing you to retire even if you don’t have a significant savings package lined up.
A Reverse Mortgage Could Be Ideal if Your Children Are Financially Stable
Many elderly couples will hold on to their homes, simply because they want to be able to provide a financial inheritance for their children. In cases where children are financially stable or are otherwise not expecting any kind of inheritance, it can make sense to take out a reverse mortgage so that the equity from the home can be enjoyed. You could use the equity for travel, or to do any of the things that simply weren’t possible while you were still tied to your career. In many cases, you might not use the full equity of your home in your lifetime, so there would still be the option for your family to buy back the home after your passing.
A Reverse Mortgage Fort Lauderdale is a Big Decision – Get the Right Advice
While there are many reasons why a reverse mortgage might work for you, it’s a decision that should not be taken lightly. If you are seriously considering your options, then you’ll need to be able to speak to an expert lending team, to find out what your future might look like if you were to start making use of the equity that is in your home.
You’ll need all of the details to be sure that you’re making the right financial decision, and there may be some that you haven’t even considered yet. As an example, you’ll still be required to pay property taxes and insurance during your reverse mortgage, and you will need to pay a premium on the loan balance if you choose something like an HECM insured reverse mortgage. You’ll also need to be aware that it is incredibly rare to find a jumbo reverse mortgage, meaning that you won’t have access to the full equity if you have a highly valuable property. Currently, an HECM reverse mortgage is capped at a value of $625,500. You’ll also need to consider closing fees, which can reduce the total amount of equity that you’ll have available to you once everything is signed.
As you can see, there are definitely reasons why you might want to get a reverse mortgage Fort Lauderdale, but you’ll need to find a lender that can give you the right information, as well as the best package deal.
If you want to learn more and explore your options, then it’s time to talk to the team at Nationwide Home Loans. We can provide consultations without pressure or obligations to continue with the process, allowing you to discover whether a reverse mortgage will work for your retirement.