4 Signs a Reverse Mortgage is the Right Financial Move
Friday, December 22, 2017, 6:00 PM | Leave Comment
One of the biggest reasons you should consider taking out a reverse mortgage is if you don’t have enough money to pay your current mortgage or you don’t have the funding to make everyday purchases.
Although this isn’t the easiest decision to make and can it can cost significant fees and interest to get a reverse mortgage, it’s helpful to many homeowners.
Below are a few other reasons that you should consider getting a reverse mortgage.
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You Plan to Remain in Your Home
If you plan to stay in your home for a while, taking out a reverse mortgage is well worth it.
However, due to their high upfront costs, if you plan to move sooner rather than later, it’s probably not worth it to invest your time and money in a reverse mortgage.
These fees include lender fees, closing costs, home appraisals, up-front mortgage insurance, and home inspections.
If you’re planning on moving in the near future, you won’t have the necessary moving funds after you spend money on a reverse mortgage.
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62 Years of Age or Older
Reverse mortgage borrowers from places like Senior Mortgage Solutions have to be at least 62 years of age or older.
If you or both you and your spouse aren’t 62 years old yet, it’s not suggested to get a reverse mortgage.
Generally speaking, the younger both you and your spouse are, the less you can actually borrow. This makes it less than ideal to invest in.
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You Can Pay for Property Taxes, Insurance, and Maintenance
If you do get a reverse mortgage, you will need to ensure that you can afford your property taxes, home insurance, and regular maintenance.
Falling behind on any of these responsibilities can cause the lender to declare that your loan is due.
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Gives You the Cash to Fix Your Long-Term Financial Issues
You can determine this by obtaining quotes from multiple reverse mortgage lenders and talking to a professional.
By doing this, you will be able to see whether or not obtaining a reverse mortgage will help solve your financial troubles.
If not, you may be better off seeking an alternative without the high upfront costs and complications.
Deciding to obtain a reverse mortgage requires a lot of planning and thought. It is a situation that should not be entered into lightly. Hopefully, this article could make your decision a little bit easier.
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Anica Oaks is a Freelance writer and web enthusiast. Read some of her published work on her Google+ page.
