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5 Things to Consider Before You Get a Reverse Mortgage

Group of cheerful seniors enjoying time together drinking tea outdoors in cafe and sharing life stories in retirement

Reverse Mortgages are one of the most popular financial resources for individuals in retirement.  Yet, making the decision about a Reverse Mortgage is not something that should be taken lightly. A Reverse Mortgage, like any other financial decision, comes with responsibilities. Therefore, here are a few things you should consider before making your decision. 

Will you qualify for a Reverse Mortgage?

If you have retired at a young age (under the age of 65), a Reverse Mortgage may not be the financial resource you are looking for at this time in your life.  In order to qualify for a Reverse Mortgage, you must be at least 62 and have enough equity in your home to pay off any mortgages.

Are you counting on money from the sale of your home to meet other needs?

Although you are not required to make payments on a Reverse Mortgage, it still needs to be repaid sometime in the future. Most individuals who obtain a Reverse Mortgage pay off the debt using funds acquired through the sale of their home. If you have other plans for those funds, you might want to consider another financial resource.

How will you use the funds you obtain through a Reverse Mortgage?

There are many great reasons why you might want to obtain a Reverse Mortgage. Travel, home renovations, and medical expenses are just a few of the things you can do with the money you receive. Although there are no restrictions on how you spend the money from a Reverse Mortgage, it is a good idea to know your plans before you acquire the funds.

Do you understand the fees associated with a Reverse Mortgage?

Yes, there are fees associated with a Reverse Mortgage, but they are no different from the normal fees associated with borrowing money.  It is, however, important to understand the fees before you apply for a Reverse Mortgage.

Do you feel comfortable with all of your Reverse Mortgage options?

Remember, the Reverse Mortgage is a flexible program so you have many options available to you. Before signing on the dotted line, be sure to inquire with a Reverse Mortgage specialist about all of your options. 

If you want to know more about Reverse Mortgages and if they are the right solution for you, call the professionals at Reverse Mortgage Answers today!