Ready for retirement but worried about those pesky bills and other upcoming expenses? No problem. There’s a reliable and easy-to-get solution called a reverse mortgage that can provide supplemental income or solve all your money problems. You won’t just reach your desired financial goals, you’ll be able to enjoy life stress-free.
What Is A Reverse Mortgage?
A reverse mortgage is a safe, flexible way to make your retirement years more vibrant and comfortable. You turn down a stream of payments (like monthly mortgage payments) in exchange for cash now. Reverse mortgages don’t require you to make house payments and can keep you in your home as long as you live there.
How Does A Reverse Mortgage Work?
A reverse mortgage is a special type of loan that allows homeowners to borrow money against the equity they have accumulated in their homes. A reverse mortgage loan comes into play when most or all of your equity the difference between what your home is worth and how much you owe on it—is gone.
You can then use this money in any way you want, whether it’s for personal expenses or medical care, or just sitting idly by in a bank account.
Who Is Eligible For A Reverse Mortgage?
The requirements for eligibility for a reverse mortgage are generally the same as those for a standard home equity loan. You must be at least 62 years of age, have owned and occupied your residence for at least one year, and have access to enough equity to cover the amount you intend to borrow.
How Much Can You Borrow?
The amount you are eligible to borrow is based on your age, health conditions, and current income. You can use a reverse mortgage to Pay off credit cards, student loans, or other debt; Buy a vacation home or pay for medical expenses; Purchase a motor home or boat; You can use the chip reverse mortgage calculator Canada to know the value you can borrow.
Meet With An Independent Counselor
This is a great idea because reverse mortgages are complicated and finding the right one for you can be tricky. An independent counselor will help you determine if a reverse mortgage is right for you and guide you through the process to help ensure a good experience.
Consider All Features Of The Reverse Mortgage Program
If you’re considering a reverse mortgage, be sure to consider all the features of the program that may affect your decision. Features of reverse mortgages may include Approval requirements: Every borrower must go through a national credit check and receive approval from their lender before becoming eligible for a reverse mortgage.
Financing amount: A borrower’s eligibility for most programs is based on age, home value, and other factors. Once approved, you can use proceeds from a reverse mortgage to cover any combination of eligible expenses, including supplemental retirement income, medical, dental, and other health care expenses, energy bills, and more.
There are many reasons that people need a reverse mortgage and they include supporting their children to buy their first home, paying off credit card debt and car loans, and even traveling the world again. But people don’t borrow money they can’t afford to pay back. A reverse mortgage is a loan that requires you to repay the loan if things go right but not if things go wrong.