Would a Reverse Mortgage Work for You?

If you are 62 or older and having a hard time financially, then one thing that may be a good move for you, depending on your situation, is a reverse mortgage. While it isn't a viable option for everyone, some people can find that it is the perfect choice for them. Here are some things that can let you know it is also a good choice for your specific situation.

You need money and your house is paid off or nearly paid off: If your house is paid off, or it is really close to being paid off, then you might have a good amount of equity built up that would mean you have enough to make a reverse mortgage a good action. This type of mortgage can allow you to pay off the rest of the mortgage. Once this is accomplished, there will also be more money left over for you to take out for yourself. You can choose different forms of getting the money. You can have it given to you at one time or you can use it as a line of credit, so you will be able to access it as needed.

You know you won't be relocating: If you have plans to move at any point in the future, then you need to continue looking into other options as far as a loan goes. A reverse mortgage won't be good for your situation when a move is a possibility. However, should you be in the home you plan on being in permanently, then this may be a solid choice. There are fees that won't make it a feasible option when moving soon, but that will be well worth it when you stay in the house.

You want a retirement fund: Not everyone is fortunate enough to have a retirement fund, and social security doesn't offer a livable amount of money for most people. If you aren't going to be able to live on the amount of money that you draw from social security and you don't have any other money or savings, this is scary. Getting this mortgage will help you to have a security blanket that you can count on because the money will be there for you when you need to access it.

Many people find that this loan helps them out when they need it the most and they don't have to worry about paying a loan back every month. All you have to do is make your regular payments and make sure the house is maintained like normal.