Thinking about getting a reverse mortgage?

If you are a maturing adult and you own your own their own home and are in need of extra cash, a reverse mortgage might be for you.

PLUSES:

aHomeowners ages 62+ may access their home’s equity for any financial purpose.

aAs long as you stay in your home the loan doesn’t have to be paid back.

aPayback happens when the home is vacated after owners are no longer occupying the property, or they have sold it.

DRAWBACKS:

aBorrowing limits are smaller than previous

aInterest rates are usually higher, and interest, service charges, & private mortgage insurance accrues monthly

aOwner must pay yearly taxes, insurance, maintenance and upkeep

aBig bucks can be taken with:

-       Loan-origination fee

-       Appraisal fee

-       Other upfront costs

A reverse mortgage can keep you in your home, but if you have a home that’s too big, two-story, outdated, or not energy efficient, another option is to downsize into a smaller one-story home. 

aIt will free up the equity in your big, old, empty nest

aIt will give you a more manageable and hopefully energy efficient home

Before making your decision, contact an experienced, reputable REALTOR.

Ken is a Senior Real Estate Specialist (SRES), call him at 806-570-2747.

Sue Lawrence and Ken McCormick can be reached at 806-355-9601. Prudential, Ada Realtors is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.