Is it an option for you?
We work hard to get rid of our debt and when we are coming near the end of a mortgage obligation we can’t help but get excited about not having that payment every month.
Better yet is the possibility of stopping that mortgage payment even though you still have an obligation on the property.
Reverse Mortgage was designed for those of us who have reached age 62. It comes to us from the same people who gave us the 30 year mortgage that got us into our homes. It must have merit even though it is the “reverse” of everything we have been taught over years about owing money.
If you don’t intend to leave your home as an estate for your heirs, or the house is only part of what you have to leave, the option to “leverage” your property with a loan you never have to pay is a joyful thought.
There are advantages and disadvantages to a Reverse Mortgage, but there are advantages and disadvantages to every decision.
A reverse mortgage will stay in place as long as either spouse occupies the property. If the property is vacated permanently the loan must be settled. That can be through sale or conventional refinancing if those remaining wish to keep the property.
A reverse mortgage offers “no payments” but you may pay any part of the obligation in a lump sum or monthly.
A reverse mortgage is granted as a total loan but may be taken either all at once or a lump and/or monthly payments to subsidize monthly living expenses. The choices may be changed as you go.
A reverse mortgage will not be granted without a counseling session to explain the conditions of the loan thoroughly, and there is in California a three day “cooling off” period that allows any borrower after signing all the mortgage documents to reconsider and cancel the entire project.
A reverse mortgage may not be for everyone but the popularity of these loans is growing by leaps and bounds after borrowers have had time to consider the advantages and disadvantages of the money that is dormant in paid for or almost paid for residences.
For more information, Dee Klein ALTA Financial Toll Free (888) 450-ALTA