What is a reverse mortgage and how can they help you? If you have been asking yourself this question, you have come to the right place. Read on to find out all you need to know about reverse mortgages.
If you are up in years and you have a home that is paid off or almost paid off, then getting a reverse mortgage may be right for you. What is a reverse mortgage you may ask, a reverse mortgage is a chance for you to have financial freedom once and for all.
I am sure when you were young, the last thing on your mind was retirement and how it was all going to come together. It is likely however as you have become older you have started to give your retirement a bit more thought. With the economy the way it is, many of you who are getting close to those retirement years are having a hard time seeing the light at the end of the tunnel. You may be wondering how you are going to be able to afford to retire and continue to live the lifestyle you have become accustomed to. These are very serious questions and ones that you should take to heart. You may find that the question (What is a reverse mortgage) can be the answer to your future.
During a reverse mortgage, you continue to live in the home as you have done your entire life. You will also continue to pay for any repairs needed and pay the taxes as well. The only difference is instead of you paying a monthly house payment to the bank, the bank pays that amount to you. There are financing fees associated with a reverse mortgage just like there are with a traditional mortgage, but you can easily pay these fees with the monies you will receive each month. The monthly amount you get for your reverse mortgage is going to depend on your age and the value of your home. For example if you have a home that is worth $200,000 and you do not owe anymore payments on it, you can expect to get a payment each month in the amount of $641 for the rest of your life. Imagine getting paid to live in your home! That is quite exciting to think about, isn’t it?
If you still owe on your current home, you can continue with the reverse mortgage process. You will have to pay the remainder that you own on your home, but this can easily be paid with the amount you will get on the reverse mortgage.
