Reverse Mortgage – Everyone has an Opinion
Everyone has heard a story of someone, somewhere who did a reverse mortgage years ago, but you owe it to yourself and your family to find out the truth of the rules and regulations NOW.
A reverse mortgage is a financial tool that can extend the reach of the money you have saved for retirement. Many affluent folks are realizing that even though they planned for retirement, the reality is that they may run out of money because Americans are living longer. The idea of having to scrimp and save as they get older is unappealing.
Some facts to consider are: the bank does NOT own your home! The bank or lender does not get on title with you when you get a reverse mortgage. Your heirs will have access to the remaining equity after paying off the balance of the reverse mortgage. And because a reverse mortgage is government insured, no one is saddled with any debt after you pass away. A reverse mortgage can be repaid at any time with no prepayment penalty.
Using a reverse mortgage is a great way to plan ahead to protect a younger spouse. Only one spouse needs to be over 62 to do a reverse mortgage, and the younger spouse can live in the home without a mortgage payment as long as he/or she desires, even if the older spouse has passed away. Of course, the property taxes and home owner’s insurance must be paid, and the home maintained.
The amount of money that will be available to you is determined by the appraised value of your home, the amount of equity you have, and the age of the homeowners. If you are talking to a national lender, give your local Colorado company a call. It pays to know your options. Many changes have been made to the reverse mortgage making it safe for borrowers and their spouses. Contact your Reverse Mortgage Specialist for additional information and a proposal created just for you.