Reverse loans can be a life-saver. Here are some tips to finding out if it’s the right move for you or not:
You fit the requirements
•You must be 62 years old or older.
•You must own the title deed to the property.
•If you took out a mortgage on that property, then the remaining balance must be small enough that proceeds from the reverse loan can pay it off.
•The property must be your primary residence.
•You must not have any federal debt that you failed to pay for.
•You must be financially solvent enough to ensure timely payments for your property taxes, the homeowner association fees, insurance and others if you want to qualify for reverse mortgages for seniors.
You’re strapped for cash
•Traditional loans can be a hard-sell. The long wait for a loan application to be approved can put you in a serious financial bind. If you need fast cash, this is a good way to get it.
•Storms did considerable damage to your home. You want to spring for extensive repairs.
•You need to pay for your medication, and your living expenses aren’t going to be enough to cover the cost.
•You want to arrange for long-term care at home but don’t want to put any extra financial pressure on your family. By using reverse mortgages for seniors, you can get the care you need without any added financial demands on your family’s budget and resources.
You understand the risks
•According to Big Decisions, make sure you consider all other options—and understand the risks—before you go for this one.
•A lot of mistaken people think reverse loans are a great way to fund trips around the world and live out their retirement style. You know better. Given how much you invested in your home’s equity, it’s only wise to make sure you’re using the proceeds for something worthwhile. For more information about our company, contact Longbridge Financial, LLC, or click here.
