Before we get into the potential benefits of a reverse mortgage, here is a quick description of what a reverse mortgage is:
A reverse mortgage is a way for homeowners over the age of 62 to borrow against the equity in their home (the value of the home minus any mortgage debt they might have). This provides the borrower with a tax free income to help supplement their retirement portfolio. Unlike traditional loans, seniors do not make monthly payments. The loan becomes due when the borrower dies, moves out of the house, or fails to pay property taxes and homeowners insurance. To learn about who qualifies for a reverse mortgage, you should contact a specialist like those at FirstBank Reverse Mortgage.
So now that we have a basic idea of what a reverse mortgage is, let’s look at some of the benefits people experience from using this unique financial tool:
- A reverse mortgage can help you continue you your financial independence and maintain or even improve your quality of life
- With a reverse mortgage, you keep the title to your home
- The money that you receive from a reverse mortgage is not considered taxable income
- You make no payments until the end of the term of the loan
- You can use the funds from your reverse mortgage to eliminate mortgage payments and paying off existing loans
Of course, more specific benefits will vary from person to person, and how much a reverse mortgage can help a person in retirement depends on the person’s particular situation and retirement goals.
If you think a reverse mortgage might be a good idea for you or a loved one, it is a good idea to speak with a specialist in the field, such as the Reverse Mortgage Specialists at FirstBank Reverse Mortgage in Riverside. The FirstBank Reverse Mortgage Professionals will help you understand all the minute details of a reverse mortgage and help you honestly assess if a reverse mortgage is truly in your best interest.
FirstBank is a 107-year-old FDIC insured bank. It is a long-standing member of the Better Business Bureau where it holds an A+ rating. FirstBank is also a subscribing member of the National Reverse Mortgage Lenders Association (NRMLA), and an approved direct lender with the US Department of Housing and Urban Development (HUD).