A reverse mortgage is a helpful tool for seniors that can be used as part of their strategy in financial planning for retirement. There are many features of reverse mortgage loans that can benefit seniors who are looking to supplement their retirement income. So, what exactly are they? Below are a few of the benefits a reverse mortgage loan has to offer.
You remain the owner of your home
Contrary to popular belief, the bank does not take ownership of your home when you get a reverse mortgage. As long as you make regular loan payments and keep up with property taxes and homeowner’s insurance, you will continue to own your house.
There are no monthly mortgage payments required from you
A unique advantage of reverse mortgages is that instead of making monthly payments like a traditional mortgage, with a reverse mortgage you RECEIVE funds. The loan only has to be repaid when the last borrower leaves the home, sells it, or moves to another permanent residence. Even though borrowers don’t have to make monthly reverse mortgage payments, they are still responsible for property taxes and homeowners insurance as well as maintaining their homes.
You are protected if the housing market declines.
The federal government insures reverse mortgage loans. With this insurance comes more security: if the loan adds up to more than your home is worth when sold, the government will cover the difference. In other words, the proceeds of your home’s sale will pay off the full loan amount, and nothing more.
You may choose from several options of disbursement.
Because each senior citizen has varied needs, there are different ways to receive the available funds. This means you can choose to get your money in one lump sum, a line of credit, monthly installments, or any combination of these methods.
There are plenty of benefits to taking out a reverse mortgage, and these are only a few examples. To see how you as an individual could benefit from a reverse mortgage, speak with one of our mortgage professionals. They will create a customized financial strategy that makes the most of all the advantages a reverse mortgage can offer.
Over what length of time are loan proceeds distributed?
This depends on how you would like to receive the loan funds. You can take them all at once, in regular monthly payments for a set term or as long as you live in the home, or through a line of credit. Sword Mortgage will help guide you through your different options to determine what works best for you and your needs.
What is a reverse mortgage?
Whether you’re looking to supplement your income in retirement or simply stay in your home as you age, a reverse mortgage can be a great solution. With a reverse mortgage, you can borrow against your home equity without having to make monthly payments. This makes it an ideal financial tool for many seniors who want to live independently and comfortably.
Why should I call Sword Mortgage and talk to a Reverse Mortgage professional?
At Sword Mortgage, we believe that an informed customer is the best kind of customer. Therefore, our loan officers will take the time to fully explain your options and help you understand all aspects of your unique situation before making a decision. Call (770) 757-5750 to speak to a mortgage professional or get started on your loan application process today.
