Once an expensive and risky strategy, tapping your home equity might now be a smart retirement planning move. Here are the 8 things you need to know first.
1️⃣ Reverse mortgages are technically loans…but loans that do not need to be repaid under certain conditions*
2️⃣ At least one of the borrowers needs to be age 62 or above
3️⃣ Those who take a reverse mortgage are borrowing against their home equity
4️⃣ Reverse mortgages do not need to be repaid as long as one of the borrowers lives in the house
5️⃣ Reverse mortgages usually eliminate any other ongoing mortgage payments
6️⃣ Borrowers can choose to receive a monthly payment, lump sum, or line of credit to use against the house (or even a combination thereof)
7️⃣ Reverse mortgages can be a welcome source of financial independence
8️⃣ It’s essential to do your homework before committing. We recommend arranging a consultation with one or more lenders by comparison shopping, using an increasingly popular online tool. Simply click here to explore reverse mortgages, and to compare pricing and service from the top providers in the country.
*The amount borrowed is only repaid in the event the borrower and their co-borrower (spouse) moves out of the home. This is a critical, and often misunderstood feature of these loans.
How to Get Started
LiveSmarter Recommends Using The Below Search Tool
With this, you can:
1. Learn more about reverse mortgages
2. Compare quotes from multiple reverse mortgage lenders
3. Calculate how much you may be eligible to receive on a monthly basis