>U Mom Knows Best: Retiring With A Reverse Mortgage

Thursday, May 14, 2020

Retiring With A Reverse Mortgage

 Planning for the future is always a good thing, especially if you are starting to think about retirement.
There are so many things to consider before you retire. Things like, should I invest more money or should I pay off my mortgage sooner. Then there is the question of whether should I consider a reverse mortgage? The below article has a lot of good info about reverse mortgages.

 Many people fear the inevitable knock they will have to take in lifestyle, once they retire. While there are several ways of getting financial assistance in retirement, many involve huge repayments and monthly commitments, which gets complicated when you’re trying to get extra money, not spend it on repayments. This is why you need to know about a reverse mortgage – here’s why you should consider it:

No Chance Of Eviction
  If you miss a payment on a regular home loan, you run the constant risk of eviction. With a reverse mortgage Florida, you are safe, because one of the terms of the loan is that you have to live in the house for the loan to be valid, but bear in mind that you will still need to pay all rates and taxes related to your property.

Variable Repayment Options
 Unless you choose to move, you are never liable for the full total of the loan amount – the longer you live on the property, the longer the loan remains valid. This makes a big difference when compared to a standard loan that you are expected to pay off over a few years.

Keep Access To Your Ownership And Equity
 You can free up a sizeable amount of money if you sell your home to fund your retirement, but that leaves you with the problem of where to live. A reverse mortgage lets you keep your home and still access its full value in the form of money you can spend.

 The amount you can borrow is quickly and easily calculated with a reverse mortgage calculator and is a reliable way of making sure that both you and the lender are protected by the federal laws which govern reverse mortgages.

What’s The Difference Between Reverse Mortgages and Home Equity Conversion Mortgages?
 In broad terms, the two are very similar. However, Home Equity Conversion Mortgages are only available from government institutions and are insured by the government. Reverse mortgages are available from private lenders, and while they are not insured by the government, you still have the protection of federal laws that apply to loans.

Pick Your Means Of Delivery
 You have three options when it comes to taking receipt of the money you have loaned in a reverse home loan – one large, a single payment, a line of credit, or in monthly installments. The benefits of having the loan paid over to you in monthly portions are that it creates a predictable monthly income, and can be seen as a form of salary. Predictable access to predictable amounts of money at predictable times makes it easy to budget from the amount that you know you are guaranteed to receive. Of course, there are benefits to the other forms of delivery too. A lump sum is a great benefit if you want to pay off a large, once-off expense, where a line of credit is beneficial if you want to draw the money on an ad hoc basis, as different needs arise in your life.

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