Many senior citizens are in need of money later in life and if you have a home, that mortgage payment can cause a great deal of financial strain on anyone’s budget. However, for some, a reverse mortgage can get rid of a monthly mortgage payment.
If you have equity in your home, you may be able to get a reverse mortgage loan that provides you with enough money to pay off your remaining mortgage principal and therefore get rid of your mortgage payment.
Yet, a reverse mortgage loan is still debt that is owed, but as long as the homeowner or homeowners live in their home and keep up their property taxes, a reverse mortgage doesn’t have to be paid back.
While most reverse mortgages are paid back from the estate of the homeowner after they pass away, keep in mind, again, that despite the fact that a homeowner may get rid of their mortgage payment and have extra money too, they must remain in their home or they will owe on the reverse mortgage.
Any senior that is looking at a reverse mortgage as an option will need to look at their financial status, if they will have enough equity in their home for a reverse mortgage to pay off their remaining home loan, and if they want to take on the type of debt that comes with a reverse mortgage.
While it can be beneficial, be sure you do all of your homework on what a reverse mortgage would entail for you and be certain it is right for you before proceeding.