Considering a Reverse Mortgage Loan? Here’s What You Need to Know

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Mortgage and Lending with Waterstone Mortgage NMLS#186434 NMLS# 274129

Considering a Reverse Mortgage Loan? Here’s What You Need to Know

Considering a Reverse Mortgage Loan? Here's What You Need to Know Many seniors are looking for a great way to improve their financial situation. Retirement or semi-retirement can be difficult due to the need to live on a fixed income. Some may have been unable to save enough in their working years, or their accounts may have been hit hard by stock market fluctuations. Still others are feeling the effects of inflation and the rising costs of medical care and general living expenses. If you are like many other seniors, you may not have a huge cash reserve available in your bank account, but you may have a sizable nest egg in your home. The fact is that you can tap into that equity without selling your home or taking on a mortgage payment when you apply for a reverse mortgage.

What Is A Reverse Mortgage?

A reverse mortgage is a unique type of loan that utilizes the current equity in your home and allows you to make regular withdrawals from that equity. Rather than you making a payment to a lender, the lender pays the funds to you. The terms of the mortgage are structured so that you will never owe more money on the reverse mortgage than the home is worth. When you decide to sell it or when your estate is being settled, the home’s value will pay off the mortgage. This essentially gives you the opportunity to keep living in your home and to use the equity now when you need it most.

Is This The Right Option For You?

A reverse mortgage is not suitable for everyone, but it may be suitable for you. You can easily learn more about the amount of payments that you could receive on a monthly basis if you were to apply for a reverse mortgage, and you can consider how these payments would ease your financial concerns. This loan will decrease the amount of equity you have in your home over time. Therefore, if you have plans to sell your home later and use the equity for other retirement plans, you should carefully consider if the reduction in equity is feasible for your situation and goals.

 

One of the best steps that you can take is to learn more about this option. You will not know if a reverse mortgage is suitable for your financial needs and long-term goals unless you take the step of speaking with a loan agent.

Shawn Gerhardson with Waterstone Mortgage Waterstone Mortgage Gerhardson Team

 

About the Author

Shawn Gerhardson (NMLS #274129) is an active loan officer with Waterstone Mortgage. Email Shawn directly atsgerhardson@waterstonemortgage.com, call at 763-691-0202 or click to get a free, no-obligation rate quote. You can also find Shawn on Twitter @Mortgageg and on Facebook Specialties: Purchase, Refinance, Debt Consolidation, Conventional, USDA Rural Housing, FHA,VA and MHFA Loans. Credit Repair, Relationship Networking, Direct experience with starting a networking group from the ground up.

 

 

 

 

 

 

 

 

 

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Rainer
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Bob Publicover
Publicover Realty Group, inc - Stuart, FL
Thinking outside the box

Morning Shawn, I know reverse mortgages have been around for some time now. Many people have asked me what I think of them. My answer to always, "Speak to the professions who deal in mortgages". I suppose if they were a bad idea, it would have disappeared as an option a long time ago, With all I've heard, I'm still confused and not sure it is for me now or in the future. 

Mar 23, 2015 11:29 PM #1
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