One of the most common reasons for choosing a Reverse Mortgage Loan is to improve your retirement. Many seniors spend their golden years struggling to survive. But, thanks to Reverse Mortgages, you can enjoy financial freedom throughout your retirement years. And, you never have to make a single mortgage payment for the rest of your life.
How Do Reverse Mortgage Loans Help Retirees
Reverse Mortgages are not home equity loans. A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you or withdrawn in a lump sum. However, unlike a traditional home equity loan, forward or second mortgage, Reverse mortgage borrowers do not have to repay the Reverse mortgage loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgagee. These mortgage loans allow you to maximize the benefits of your home equity, while living financially-secure and stress-free. And, when your time comes, you can still leave your home to your heirs.
With a Reverse Mortgage, your home equity is converted into cash you can use any way you like. These are some of the common uses for Reverse Mortgage Loans:
- Create a Passive Monthly Income
- Get Funds for Debt Consolidation
- Access a Lump Sum of Cash
- Eliminate Mortgage Payments
Why Get a Reverse Mortgage Loan?
If you’re 62 years old or older, and live in a qualifying residence, you may qualify for a Reverse Mortgage Loan.These are just some of the many reasons to choose a Reverse Mortgage to help improve your retirement:
- Mortgage Payments – As long as the home is your principal residence, and the obligations of the mortgage have been met, you will never have to make a payment.
- Closing Costs –Oftentimes, your closing costs can be financed in your Reverse Mortgage Loan.
- Early Retirement Penalties –The fees related to the mortgage are much lower than Early Retirement Penalties. They’re also a much smarter alternative.
- Right of Recession –Borrowers have three business days to cancel the loan after signing the loan docs. This period is referred to as the Right of Recession.
How Does a Reverse Mortgage Work?
Once the Right of Recession period has expired, your funds are disbursed. First, any current debt in your home will be completely paid off. A new lien is recorded against the home. Then, you’ll receive your funds based on the payment option of your choice:
- Lump Sum Payment –Get all of your money, all at once, to enjoy your retirement in
- Fixed Monthly Payments –Receive a fixed payment amount every month to improve your retirement.
Your funds can be used however you wish… as a line of credit, to travel, help kids buy home, support grandkids through college, pay off bills, or any way you wish. Enjoy the equity in your home during your retirement years, and still leave your home to your heirs when your time comes.
Ready to improve your retirement years. Turn the equity in your home into the cash you need to enjoy your golden years. And, never make a mortgage payment for the rest of your life. Contact us for more information on getting a Reverse Mortgage today!
