With the ups and downs of 2020, many seniors turned to a reverse mortgage loan to ease the stress of financial uncertainty. How do you know if a reverse mortgage is right for you? If you are a senior homeowner who is 62 years and older and have equity in your home, you may be able to benefit from a reverse mortgage.
Eliminate monthly mortgage payment1
If you still have a conventional mortgage on your home, replacing it with a reverse mortgage loan can eliminate your monthly mortgage payment.1 It may increase cash flow and give you more options on how to manage your finances in retirement.
Access to funds and stay in your home2
A reverse mortgage loan may be right for you if you want to stay in your home2 and need an additional source of funds. You can use the funds from a reverse mortgage any way you want, including making modifications to help make aging in place more comfortable.
You can use the proceeds from a reverse mortgage to pay down high-interest debts such as credit card debt or a car loan.2 This is another way that a reverse mortgage may increase your cash flow.
Supplement retirement income
If your retirement savings falls short of covering your expenses, a reverse mortgage may be able to provide some help. The term and tenure options allow you to receive your reverse mortgage payment in the form of monthly payments.
When an unexpected expense arises, you may be wondering how you will pay for it. A reverse mortgage line of credit may be the answer. A line of credit grows over time,3 and is available when you need it. You only pay interest on the portion you withdraw.
Are you interested in learning more about the benefits of a reverse mortgage? Call (800) 976-6211 to speak with a licensed loan advisor.
1 Your current mortgage(s) and any other existing liens against the property must be paid off at or before closing. You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
2 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
3 The reverse mortgage loan balance grows at the same rate as the available line of credit. Line of credit growth occurs and is only a benefit when a portion of the line of credit is not used. The unused line of credit grows over time and more funds become available during the life of the loan.