Though many people are exposed to and are familiar with traditional home mortgages for a large part of their lives, when moving into their senior years, the idea of reverse mortgages starts to enter the conversation, according to a recent article from Examiner.com
Many people aren’t sure how a reverse mortgage could be beneficial to their situation or are confused on how they work, says the article, which focuses on the vital information to know when deciding if a reverse mortgage is the right path to take.
Reverse mortgages are ideal if a homeowner is close to paying off their mortgage and have acquired some equity in their primary residence, according to Examiner.
“This is also the time that retired homeowners may need additional income and prefer not to sell their home. The reverse mortgage can also be used for home repairs or for paying off other debts such as medical bills or credit cards,” the article states.
Another key detail that the article points out is that there is no repayment required until the last homeowner leaves or sells the house.
“The amount that is available to borrow with a reverse mortgage will depend on the value of the home, the borrower’s age and current interest rates. This should be reviewed during the application process and the home will also need to be inspected,” the article states.
Read more at Examiner.com.
Written by Alana Stramowski