Is a Reverse Mortgage Loan a Good Idea for Me?

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Is a Reverse Mortgage Loan a Good Idea for Me?

Although you have probably seen some advertisements about reverse mortgages, you may not have given them much thought. However, as a senior looking to supplement your retirement income, but also trying to avoid monthly loan payments, those same advertisements may have also piqued your interest. No matter what stage of the research process you are in, one question likely sticks in your mind, “Is a reverse mortgage good or bad for my future?

There are a few key questions you can ask yourself that may give you an answer.  To start, ask yourself:

  • Would it help me to finally have a mortgage loan where I don’t have to pay a monthly mortgage payment*?
  • Would it help me to be able to access the equity in my home without having to sell it?
  • Would I find it useful to receive my home’s equity in cash while none of it is taxed?
  • Do I have medical expenses, an existing mortgage, or bills I would like to pay down or pay off?
  • Would I feel more financially secure with a reverse mortgage line of credit available for my immediate and possible future use?
  • Would I financially be able to continue paying my home insurance and property taxes?

If the answers to these questions are a solid, “yes,” then the answer to the question “Is a reverse mortgage good for me?” may also be a “yes.”

Reverse mortgages can be used to pay off existing mortgages, and once you do this, you will have no monthly mortgage payment because loan payment is deferred to when it matures.  Instead, borrowers only need to comply with the loan terms, such as paying taxes and insurance, and keeping the home in good condition.  In addition, reverse mortgages were designed to help seniors age in place, so you can access the equity in your home without having to leave the home – a feature that proves helpful to many seniors. And because the most common reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs), are government-insured, these loans may provide you with the peace of mind you need to live a comfortable retirement.

Learn more about reverse mortgages at https://americanadvisorsgroup.com/.  On this website, from the top reverse mortgage lender in the industry, you will find a wealth of information featured on the Frequently Asked Questions section.  As you continue your research and learn more about the great features of a reverse mortgage, the answer to your question “Is a reverse mortgage good or bad for me?” will only become clearer.

*Borrowers remain responsible for homeowner’s insurance, property taxes, and home maintenance.

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