Alternative options to a reverse mortgage.
If you have been considering a reverse mortgage, but just cant make up your mind if it is right for you, then maybe we should cover some alternative options.
Bring up moving and most people cringe a little. Shrinking your possession down to a smaller home is very stressful for some. On top of that, the memories associated with a home make that decision even harder. These facts do not take away from the fact that moving is sometimes a vetter idea than getting a reverse mortgage. You can get one on the next home anyway, so factor that in too. Once maintenance starts to get too far behind, or medical services are needed, but too far away, it could be time.
A solution for the senior that needs to move and they want to do a reverse mortgage is to buy the next home with one. To accomplish this, you need to have a down payment, but after that, there are no mortgage payments. This down payment can come from the sale of your existing home, or from savings if you have it. This solution has helped a lot of seniors since the program became available.
Leave everything the same
It is a fact that not everyone needs a reverse mortgage. When you have the abiolity to save money every month, you probably could pass on this option. The truth is that many seniors dont fit in this category, and help is needed. When Social Security is your only income, the savings can be depleted very quickly.
You could ask your family for help.
If you have children that think the home is their upon your passing, you may find that they try to convince you to NOT do the loan. They have the misconception that you will lose the home if you do.
There is a great solution available when your heirs want your home, and you need some financial help. If you allow them to contribute to your monthly expenses, your pressures will be relieved a bit. Then after your passing, they can have the home. Onther option would be to sell them the home on a life estate. This allows you to live there rent free and they get the home once ou dont need it any more.
I would say that a very large percentage of seniors value their independence above most things. This creates an issue when it comes time to ask for help. A reverse mortgage is probably a good choice if you fit into this category. It is your equity and you should be able to use it as needed. There is nothing wrong with using it and then leaving what is left over to your loved ones.
This areticle was intended to open you eyes for some options out there. What is the right answer for you? No one can answer that but you, because everyones situation is different. Get some guidance from a good loan officer and make your decision. You wont regret it no matter what you choose.
There are a surprising number of folks that think there are reverse home loan disadvantages. This helped me choose a career that shows senior citizens how a reverse home loan can certainly help them. Because of this, I have built an internet site . that offers quite a bit of data to help a senior become more knowledgeable, making their home loan decision much easier.