Consider these 3 ways a reverse mortgage can help you. Get started enjoying your golden years today.
Use a Reverse Mortgage to Pay Debt, Improve Cash Flow, or Purchase a New Home
Have you heard that reverse mortgages are improving the lives of seniors over 62 years old? A reverse mortgage can solve many financial problems. Here are three of the ways that a reverse mortgage can be used to improve your lifestyle.
Use a Reverse Mortgage to Consolidate Debt and End Monthly Payments
One way that seniors have been improving their lives is by paying off debts with high interest rates or high payments. A reverse mortgage does not require monthly mortgage payments. You do not need to make a payment as long as you live in and maintain your home. You can take a lump sum distribution to pay off an existing mortgage and end monthly mortgage payments. If medical bills have become a problem, you can pay them off. Perhaps, you accumulated high interest credit card debt. Wouldn't it feel wonderful to pay off your balances and be free? Talk to a reverse mortgage lender to calculate your maximum reverse mortgage amount. See if there is enough equity in your home to pay everything off and end monthly payments.
Receive Regular Payments for a Period of Time, For Life, or Establish a Line of Credit
A reverse mortgage offers the option of receiving regular payments each month. The term payment option offers larger monthlypayments because there is a limit to the number of payments you'll get. For example, you could receive $500 a month for 60 months. The tenure payment option guarantees payments for as long as you live in your home; it's open-ended, so the payments are smaller. You could also opt for a line of credit. This option can make cash available at will. You only pay interest oin amounts used.
Purchase a Home Using a Reverse Mortgage
If you want a newe home but don't want to tie up all your cash, and don't want monthly payments either, you could use a reverse mortgage to buy the home.
If you sell your current home and receive $300,000, and want to buy a smaller home for $300,000, you could pay cash. But then you have used up all of your money. Or you could get a mortgage, assuming that you have the income and credit to qualify. Or you could buy with a reverse mortgage. For example: Take a $199,500 HECM loan. Loan fees amount to $15,500 so you put up $116,000 to buy a $300,000 home and have no payments. You keep nearly $200,000 in your pocket.
Renee Morgan
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