Reverse Mortgages are often mentioned in television commercials, but does the average American know the pros and cons of reverse mortgages?
Are you an emptynester? Have all of your kids moved out and you’re wondering if you should keep the family home? You’ve seen all of the commercials about Reverse Mortgages, but what does that mean for you and your family? Does the fact that a President signed reverse mortgages into law make you more inclined to pursue one?
It’s true, President Ronald Reagan signed reverse mortgages into law in 1980. Reverse mortgages are loans made available to homeowners over the age of 62 that enables them to convert part of the equity in their home to cash. The concept was designed to help retirees with limited income to use all of the money (equity) in their homes to pay for basic living expenses and healthcare. Once approved, the funds can be used for whatever you choose.
My husband and I aren’t quite emptynesters, but we will be approaching that path soon. Now is the time for us to sit down and plan our retirement. We know about our savings, retirement and 401K plans but their are other options for us to consider. After completing extensive research regarding Reverse Mortgages, we liked everything about the program. Listed below are the Top 5 Reasons we are considering a Reverse Mortgage.
Top 5 Reasons to Choose a Reverse Mortgage
- No monthly loan payments
- The lender makes payments to the borrower (me)
- Loan is not due until after the lender is deceased
- Cash payments to use as I choose
- I can continue to live in my home until I die (taxes must remain current)
Together we’ve thought about how much equity we would have accumulated in our home in about 15 or 20 years. The amount varies depending on real estate rates in each state. We think our equity would be substantial and we could vacation together every year. We’ve even considered an extended European vacation for one year. Neither of us have ever been on a cruise ship, we both would like to take a Caribbean cruise. The sky is the limit on the amount of ways we could spend our money and we both are quickly adding to ur bucket list.