There are many options that seniors have when it comes to their homes. One of the more popular options that seems to be getting more popular every year is a reverse mortgage. This type of mortgage is only available to those who are 62 years of age and older. Plus, the person has to have paid down a considerate amount of their mortgage or no longer own on the home that they live in. For the most part, companies want the person to be able to pay off their current mortgage with the funds they receive from this mortgage. The reverse mortgage allows you to take some of the equity that you have paid in over the years and turn it into cash to use for whatever purpose the person may have.
The main question that people have is whether they are eligible for this type of mortgage or not. If you meet the age requirements, this is half the battle. You must also live in the home that you are trying to get this mortgage on and you must live in the home as your main residence. The good news is that once you are approved for this and receive your funds, you do not have to pay this money back while living in the home. If you were to move, interest and repayment terms must be met.
How to Apply
Applying for a reverse mortgage can be done through about any company that offers mortgages. Most people choose to go with the company they worked with for their mortgage, or through government funded programs. Government funded programs are the most popular for those who are at the age of 62 or older, since these can be easier to get through and have a point of contact to speak to if there are any concerns or questions.
Is This A Good Choice for You?
Several people have often asked if this is a good choice for them to make or not. However, this is really up to the individual. If you know that you are going to be living in this home for many years to come, then you have a better chance of making this work than those who are planning to move within a year. The equity that you receive from this mortgage can be used in any way that you want, whether this is to pay some expenses down, or even spruce up the home a bit. But, you have to know whether this mortgage is right for you or not.
If you find that you are having a hard time financially, then the reverse mortgage could be the best route to go. You have to weigh the pros and cons of this decision for you. But, several senior citizens have gone this route in order to feel more financially stable. You will want to talk to a professional before jumping into this decision and find out what this type of mortgage is going to mean for you, as each case is different.