A reverse mortgage allows homeowners over the age of 62 to cash in on the equity of their home, but many people are not aware of all opportunities…
With a reverse mortgage the amount you receive will probably be less than you are shown in the initial calculations. This is because the money for the taxes, insurance, and fees is subtracted from the amount the mortgage holder receives for their monthly payment, thereby reducing the net amount of the money you’ll get each month. (You are prepaying all the administrative fees in the beginning to do the reverse mortgage.)
Reverse mortgage holders could lose their home when it is no longer their primary residence (to be confined to an assisted facility, or to move for much of the year to a second home or somewhere).
Keep your eye on the future and remember that the money from the reverse mortgage could allow you to keep your independence at home should you or your spouse’s health take a turn for the worse in the future.
A reverse mortgage can be a great financial vehicle to carry you through your golden years in relative financial security. Just be aware that there are dangers to reverse mortgages, just as with any other financial products.
It’s always wise to avoid surprises.