As you start or approach retirement, many people find that
they may need more income. There are many ways to increase your cash inflows
like a dividend paying stock or a part time job. But there’s another option
that you may want to consider – reverse mortgage. What is a reverse mortgage
and is it safe?
Understanding Reverse Mortgage
Getting a reverse mortgage loan is just like selling your
house to a lender in return for money. It may be in the form of an income
stream, line of credit, or a lump sum. You will be allowed to stay in your
house for as long as you can. It is still a loan and you will borrow an amount
that is less than the value of your home. The amount that you owe will increase
as time passes by as interest rates are applied.
You don’t have to repay the loan until you die, stop living
in the house, decide to sell your home, or move to a nursing home. During that
time, your house could be sold to cover your debt. Your heirs may keep the house
provided that they repay the loan.
What Is So Good About A Reverse Mortgage?
The big plus of a reverse mortgage Columbia is that it can
provide you with an income stream that could be very welcome once you retire.
With countless Americans underprepared for retirement in terms of their finances,
getting a loan could be helpful.
A reverse mortgage tend to be tax free and that is another
benefit that borrowers will enjoy. Other retirement funding options require you
to downsize and sell your house or even to move to a much less expensive
region, reverse mortgages will allow you to stay in your house while you
receive regular payments.
Is A Reverse Mortgage Safe?
Reverse mortgage is an effective and safe way to increase
your retirement income. But it also has its own set of disadvantages.
You may be sold one with terms that are less ideal by a
pushy sales person. Do not fall for their hard sale pitches. In case you are
interested in a reverse mortgage, it is better if you get in touch with solid
lenders on your own and maybe have an attorney or reverse mortgage specialist
to help you out before you sign any contract.
You might not get as much income through a reverse mortgage
as you may have expected. The amount of money that you can borrow would depend
on certain factors like your life expectancy and that of your spouse, as well
as the home value, home equity, and the current interest rates. As time goes
by, interest rates will be added to your loan balance and you also have to deal
with closing costs, just like other types of loan.
A reverse mortgage loan may not be the financial option that you
thought it was since you will still be held accountable for paying off home
related expenses like home insurance, property taxes, home maintenance, and
home repairs.
Call Reverse Mortgage Specialist if you wish to know if a reverse mortgage is the best option for you.
David Stacey
Reverse Mortgage Specialist
Greenville, SC 29607
864 920 2733
http://reversemortgagegreenvillesc.com/
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