A reverse mortgage might be your best option as a senior. Obtaining this type of loan allows you to use the equity you have built in your current home, and use it as a financial resource after you retire. If you are unsure about this type of mortgage, there are some things you could ask your reverse mortgage company about.
What Will I Use the Funds for?
The funds you receive from a reverse mortgage can be used in a variety of ways. If you have not paid off your current home, you can use the funds to pay it off. The rest of the money can be used to purchase a new home. A lender can explain all the details of this and what the requirements are for eligibility.
How Will I Receive the Funds?
There are a variety of ways you can receive the funds from your reverse mortgage. Your lender at the reverse mortgage company can go over all of your available options so you can make the best choice. One might be to receive a lump sum at the beginning of the transaction, while another might be to receive a certain amount as monthly income. You could also receive it as a line of credit to use as you see fit, or you could discuss combining a couple of these options.
Is This the Best Option for My Situation?
There are certain determining factors that can help you decide if a reverse mortgage is best for your situation. Your lender can go over those factors with you, which might include your age, the size of the home you wish to buy and a variety of other aspects.
Your reverse mortgage company is there to help you use the equity you have built in your current home. If you are interested in a reverse mortgage, contact your lender today to find out more information about eligibility and the options you have. Visit the website for more information.