SOURCE: money.usnews.com
A reverse mortgage might just be the secret to early retirement. đź’°
Find out how this financial strategy can help you live your retirement dreams sooner than you think.
One of the biggest advantages of a reverse mortgage is that it provides a way to cover current expenses. “Money from a reverse mortgage can provide seniors with the financial security they need while allowing them to stay in their home,” says Katie Ross, education and development manager for American Consumer Credit Counseling in Auburndale, Massachusetts.. This could help you avoid moving to a smaller, less expensive place.
Another perk is that you won’t have to meet the same criteria required by other loans. “There are no credit-worthiness or income requirements,” Ross says. If you meet the age guidelines, live in the home and have enough equity, you will typically be able to secure a reverse mortgage.
When you receive funds from the loan, you won’t have restrictions on spending the money. “The funds from your reverse mortgage loan can be used for any purpose,” says Joseph J. Zoppi, managing partner of Templar Real Estate Enterprises in Princeton, New Jersey.
You also won’t have to worry about paying back the loan while you remain in your home. “The homeowner does not need to make any monthly mortgage payments as long as the homeowner lives in the home and continues to meet their obligations,” Zoppi says. These will typically include paying the property taxes, maintenance and insurance fees.
Want to learn more about reverse mortgages and how they can benefit you? Let’s chat and we’ll connect you with our trusted lender. đź’Ľ