If this doesn’t apply to you, perhaps you know someone 55 or older who might find it helpful…
A reverse mortgage lets you turn your home’s equity into cash without having to move or make monthly payments. It’s designed for homeowners 55 and over who want to “spend down” their home equity. If you or someone you know is in this situation and needs extra cash flow, here are some things to consider BEFORE choosing a reverse mortgage.
If simply want money for a vacation or new car, a reverse mortgage is an expensive way to get it. And if you want money for investments, keep in mind that the cost of the loan is likely more than you could safely earn. Because the interest rate is high and the amount you owe grows every month, the younger you are when you take out a reverse mortgage, the more your equity will be eaten away by the time you’re ready to move.
As your mortgage professional, chances are we can tailor a home equity loan or line of credit to meet your needs in a more cost-effective manner than a reverse mortgage. We can offer a low interest rate and we can set the monthly payments low enough to ensure you’re still getting all the cash flow you need.
Before deciding on a reverse mortgage for yourself or your family member, call us today!