As you retire and look to the future, you may start worrying about how you're going to stay afloat. You have your pension and savings, but it may not be enough to keep you going. What do you do in this scenario? Many homeowners are now looking into a reverse mortgage, to keep money coming and help them enjoy their retirement. Is one right for you? Let's find out.
What Is A Reverse Mortgage?
First of all, what is a reverse mortgage? As the name implies, it requires you to already own your own home. It's essentially a way of using the value of your home while you're still living there, so you can cover costs or pay for other needs without having to sell it.
To get a reverse mortgage, you will need to talk to reverse mortgage lenders in Fort Lauderdale. They'll use the value of your home to agree on a loan with you, that will be paid out as long as you live in the home. You can use that money for anything you need it for, making it a great way to get some extra cash coming in when you need it the most.
The loan will not need to be paid back until you no longer live in the home. In most cases, this will be when the loan recipient passes away. The most common way to pay the loan back is by using the proceeds from the sale of the home.
Who Can Get A Reverse Mortgage?
So, if you need some extra cash, a reverse mortgage may be just what you need. Are you eligible to apply for one? If you meet the following criteria, then you should look into a reverse mortgage for yourself:
- You are 62 years of age or older
- You own your own home outright
- The home must be your primary residence
If you meet this criterion, then you can be offered a reverse mortgage. You do have other options as well, so you'll need to talk to a reverse mortgage company in Fort Lauderdale, to see what they have to offer.
The Benefits Of A Reverse Mortgage
There are a lot of benefits to using a reverse mortgage in your retirement. Here are just a few that you should consider:
Repayment doesn't happen until you no longer own the home: As mentioned above, you will not need to repay your reverse mortgage until the home is no longer in your possession, or upon the death of the homeowners. Even if your spouse passes away, you still won't need to pay the loan back until you no longer own the home.
Perfect for covering extra costs: As you retire, you'll find there are extra costs that you need to cover. These can be difficult when you don't have a full-time paycheck coming in. The most common costs covered by those getting reverse mortgages are medical costs. It's a great way to pay these costs off, so you don't have to worry about getting the treatment you need.
A way to release the equity in your home: If you own your home outright, you should be getting the value from it while you still live there. Until reverse mortgages became a viable option, you couldn't get the value from your home until you sold it. Now, you can use that money and stay in that home.
You don't have to move home: One of the best things about a reverse mortgage is that you won't need to move home in order to get the loan. This is perfect for a lot of people, as they want to stay in the home that they've lived in for sometimes decades. They can stay put and be visited by their children and grandchildren, in the home where they started their family.
There are plenty of reasons why you may want to get a reverse mortgage. Talk to your lender today, and see if one is right for you. Before long, you can be using the value of your home while you're still living there, getting the best of both worlds.