Is a Reverse Mortgage a Right Option for me?
Reverse mortgage is often an underestimated retirement plan that older people often either mistrust or overlook. However, recently there has been increasing popularity for reverse mortgage, as its financial benefits and security that it provides to the older people is remarkable.
Reverse mortgage involves the risk of some of your most valued asset like your home that you reside in, your life time savings and any source of fixed income. Which is why it is completely normal for someone to be confused about, and to some extent even be doubtful whether reverse mortgage is a good option for them or not.
To help you in developing a better understanding of reverse mortgage and to wisely choose whether it is the right option or not, here are some detailed features and pros and cons of reverse mortgage.
- A reverse mortgage is more of a long-term plan. It is a plan that will last you for as long as you are alive and residing in the primary house. So, if you are in search for a more short-term, quick solution to something, then reverse mortgage might not be right for you.
- The Employment Research Benefit Institute conducted a survey that found out that 41% of the older age population does not have any retirement savings, and 44% of them do not have the sufficient retirement money that can fulfill their basic needs. If this is a case for you as well, then reverse mortgage might be the right option for you. Reverse mortgage will allow some extra cash to flow in to your home regularly.
- A reverse mortgage lender cannot take more money from you than the loan’s actual value, regardless of any drops in the value of them house. This means that the amount you have to repay will remain standard for as long as it’s paid.
- A reverse mortgage has high closing costs, which can be an important variable cost.
- If you plan on leaving your home as inheritance for your family, then reverse mortgage is not the right option for you. In a reverse mortgage, the house will be used as your way of paying the debt after you die.
- You must be entirely sure that you want to live your life in this particular home. If you plan on relocating any time sooner or later, then reverse mortgage is not for you.
- Reverse mortgage is a better option, or alternative to selling your home for cash. Selling your home can get you into loss because of the general decrease in property rates. However, a reverse mortgage will allow a regular flow of cash for you.
If you are a reverse mortgage expert and are looking for clients who would qualify for one and would be interested in getting a reverse mortgage then you should reach us at www.inspirecs.com or call one of our sales representatives at 1-800-986-9315 EXT 1 01 now.