When to Consider a Reverse Mortgage

When should I get a Reverse Mortgage?

real estate agent holding documents and talking to elderly couple in front of house

Reverse mortgages can be a useful tool for seniors and retirees for a variety of reasons. Much like with social security, the value of a reverse mortgage increases the longer you can hold out. The benefit of aging is qualifying for more money from your reverse mortgage. After all, the maximum amount you are eligible to borrow uses your age as one of the determining factors. 
You must be 62 years of age or older to be eligible for a reverse mortgage, but that doesn’t mean you should jump at the opportunity right after blowing out your birthday candles. Remember, it pays to wait. 

Reverse Mortgages and Retirement

If you are all set to retire, or have retired already and have doubts about living off of your social security benefits or life savings, then reverse mortgages could be a solution. It is important to remember that one of the most popular ways to utilize a reverse mortgage is in conjunction with social security benefits and savings. While a tax-free lump sum of that proportion could help settle many debts or help finance a quality of life purchase, recurring monthly payments are still a largely popular option. 
Why? Generally speaking, it is much easier to budget and plan ahead with scheduled deposits taking the place of paychecks after retiring. Reverse mortgages have been widely thought of as a much-needed and appreciated source of income for retirees.

Considering a reverse mortgage?

You should consider getting a reverse mortgage if you’re looking to increase the quality of your life, when you want to live the remainder of your life in your home, when housing prices are higher and interest rates lower, as a backup plan for a line of credit, or if you are cash-strapped and simply need the money. 
If you feel any of these apply to you, then a reverse mortgage is something worth looking into. There have been many negative views on reverse mortgages over the years, but they have also provided peace of mind to thousands of families. The best course of action would be to consult with a mortgage specialist to find out how a reverse mortgage could benefit you. 

If you are interested in learning more about reverse mortgages, fill out the form below to schedule a risk-free consultation with a home loan expert.