62 or Older? How is a Reverse Mortgage the Perfect Financial Solution for You?

Dear Reader,

Are you and your spouse all set to enter your new life of retirement? In that case, you know the importance of a good financial plan that can act as your primary source of income, since you do not enjoy a regular salary anymore. In case you have put in some money into your retirement, you may have adequate resources to sustain yourself. But if the house is essentially the major part of your net worth, what is the solution?

Here are three reasons for choosing a reverse mortgage, since it is a great tool to leverage the equity that you've built up in your home:

1: This Is Your Last Home

If you wish to qualify for a reverse mortgage, it is mandatory for you to be a homeowner or you must be particularly close to paying off any outstanding mortgage debt. In simple terms, a reverse mortgage involves money that is borrowed against your home’s equity, which essentially acts as collateral. Hence, in case you wish to stay in this house on a long-term basis, a reverse mortgage is a great alternative. 

Remember that purchasing a new home or shifting is possible even with a reverse mortgage. All you must do is pay the outstanding balance, similar to other loans or mortgage products.

2: You Don't Plan On Leaving Your House To Anyone

Do note that upon the passing of your spouse, your reverse mortgage becomes due. Usually, this is followed by the selling of the house or its transfer for covering the amount of the mortgage that is still outstanding. Hence, a person who inherits your house basically inherits the reverse mortgage too. 

If you have no children or they are financially stable already and do not require an inheritance, your house need not be left for anyone, making a reverse mortgage an amazing source of income.

3: You Can Afford Taxes And Upkeep

Lastly, do remember that a reverse mortgage does not eliminate the responsibility of taxes, insurance as well as expenses associated with maintenance. If you do not pay for these costs, it may cause your reverse mortgage to become instantly repayable. In case these expenses are something you can afford easily, you will live comfortably.  

In case you want to optimize your home equity as a financial asset and you as well as your spouse are 62 or older, we recommend opting for a reverse mortgage. If you wish to learn more about these financial products as well as your alternatives, get in touch with us today. Our team of mortgage advisors will be more than happy to explain why a reverse mortgage is a good fit.

With Love,

Sade.