Top things to know about a reverse mortgage
Lately, reverse mortgages have become a hot topic. Maybe you have seen the online ads or the commercials on TV, and are interested in how they work. Reverse mortgages may seem complicated, but once you start understanding them they can feel less overwhelming. If you or someone in your family are considering a reverse mortgage, knowing more about the process can help you make a decision that is right for everyone!
So how do reverse mortgages work?
A reverse mortgage company will give you a monthly payment in order to receive the home once the last owner leaves the home. This can be due to moving to an assisted facility, in with a relative, or passing on. Many people choose this option so they can have a monthly payment to have a more comfortable living. Sometimes, social security and pensions may not be enough. In order to make ones last years more comfortable, having some extra income can go a long way. In order to get the maximum credit, make sure you shop around for the best options. Different companies may have different offers.
What are the requirements?
In order to receive a reverse mortgage, you either need to own your own home or have a low remaining balance on your current mortgage. You will also need to be 62 years or older. Different companies also may have different requirements.
What fees am I responsible for?
When you have a reverse mortgage, you will still be responsible for homeowners insurance, property taxes, and any house maintenance. After all, a reverse mortgage does not mean you are signing away your home. It is still your home and still in your name, so this is something one should consider. There may also be a closing cost.
Is it the right choice?
It is up to you or your family if you are making the right choice. It is always nice to get your family involved! They can help you through the process and better understand the process. A reverse mortgage can be different for everyone. It all depends on your age, the value of your home, and the remaining mortgage you have, if you have one.