Reverse mortgages are financial tools that have been gaining popularity in recent years, particularly among seniors 62 and over who are looking for ways to supplement their retirement income.
Here are the answers to the top 5 questions people have had about reverse mortgages:
- Provides a source of income: A reverse mortgage allows homeowners to access the equity in their home, providing a valuable source of income that can be used to cover expenses, supplement retirement income, or make improvements to the home.
- No monthly payments required: Unlike traditional mortgages, with a reverse mortgage, the borrower is not required to make monthly payments. The loan comes due when the home is sold or the borrower passes away.
- Loan amounts increase over time: With a reverse mortgage, the line of credit loan amount increases over time as interest accrues on the loan. This means that borrowers can access more equity in their home over time.
- Can be used to pay off debt: A reverse mortgage can be used to pay off existing debt, such as credit card balances or medical bills or even an existing mortgage, which can provide financial relief and improve cash flow.
- Flexible payment options: Reverse mortgages offer flexible payment options, including lump sum payments, monthly payments, or a line of credit. This allows borrowers to choose the payment option that best meets their needs.
Reverse mortgages can provide valuable financial benefits for seniors who own their homes. With no monthly payments required, the loan amount increasing over time, and flexible payment options, a reverse mortgage can provide a source of income, help pay off debt, and provide financial security during retirement.
Jan Jordan is a Reverse Mortgage Specialist serving the Erie, Dacono, Fort Lupton, Windsor, Fort Collins, Loveland, Greeley, Longmont, Boulder and other Front Range areas of Colorado. Contact Jan and learn if reverse mortgage is right for you.