A reverse mortgage offers many advantages. However, it does come with a ton of information. So make sure you have a good idea of how it will turn out so you know if you would be on the losing or winning side of things.
It’s ideal for you if:
• You don’t plan to leave your home. That’s one of the conditions of reverse mortgages for seniors. The property has to be your primary residence. Be sure to know the maximum amount of time you can be away from home without violating the terms of the agreement. This is crucial, especially if you regularly spend a lot of time at your children’s homes, leaving the property for weeks or maybe even months at a time.
• You’re on a fixed income and have no other assets to your name. So if an emergency comes up—home repairs that come with a hefty price tag or medical emergencies of long-term healthcare, all of which could burn a huge hole in your pocket.
• You have no children or heirs to leave your home to. Might as well take advantage of the equity in your home this way.
Tips
• Zero back taxes. Make sure you have no standing government debts. If you have back taxes, though, you’ll have to pay those off or use a portion of the loan to cover the cost.
• Save on interest. Make sure you don’t have to shell out more money than you should for the interest. Do this by taking out loan money only when you need it.
• Plan it out, says Consumer Finance. Manage your payment plan for your property taxes and homeowner’s insurance beforehand.
So go ahead with your plans. And don’t forget to ask for help. Always consult a specialist to help you plan and map up outcomes.
