Other Reverse Mortgage Options and Financial Options

In the current economic climate if you are an older homeowner having problems paying bills you may think your choices are limited. However there are a number of options available which can provide financial relief and peace of mind. Of course there is the reverse mortgage option which is what this site specializes in discussing and you should educate yourself on the pros and cons of a reverse mortgage, but there are also other reverse mortgage options:

Relocating and Downsizing

One reverse mortgage option is to downsize to a smaller property. Relocating comes with its own headaches and costs. It is an option to consider if the homeowner feels up to the challenge of putting the house on the market, dealing with a moving company, packing and finding a new residence. The  homeowner could save money in a house sale by utilizing a flat fee multiple listing service (mls). A flat fee mls will enable the seller to circumvent paying a seller’s agent commission which is around 2.5% of whatever the house sells for. The home seller will still, typically, have to pay the commission for the home buyer’s agent.

Selling and Renting

This option still entails the stress of moving however a lot of the stressors associated with homeownership disappear. Some benefits of renting includes the fact that someone else does the repairs, you can be flexible and switch locations easily if need be, and you’ll be avoiding:  mortgage payments, property tax, insurance fees, maintenance, and upgrades. Also keep in mind that there are buildings and communities that cater to renters 55 and up.

Mortgage Refinancing

Refinancing your existing mortgage may lower your monthly payments. It may allow you to pay off your mortgage faster and receive cash out of the equity in your property.

Home Equity Loan or Line of Credit

These products borrow against the value of your home. A loan is distributed and you will receive a lump sum or a line of credit to be drawn upon as needed.

Personal Loan

Personal loans typically have higher interest rates than other types of financing options. They also may be unsecured, meaning no collateral is required.