Reverse Mortgage

If you are reaching retirement and concerned about your mortgage there are a couple of smart options for seniors. Two of the most popular ways to reduce the stress of caring a mortgage into your retirement years are to downsize your home or take out a reverse mortgage.

Downsizing your home allows you to buy a smaller, more manageable and affordable home. You reap the benefits of reduced up keep and any profits from selling your older, larger home can be used to fund your retirement.

Unfortunately, in the current mortgage market there may not be much profit to be gained. That is why more and more seniors are turning to reverse mortgages or Home Equity Conversion Mortgages (HECM) to turn some of their home equity into retirement cash.

Some of the basic requirements for a reverse mortgage include:

• Homeowner must be at least 62 years of age
• A reverse mortgage can only be made on a primary residence
• Eligible properties include: single family, townhouse, condo, and multi-family (less than 4 units)
• There are no income or credit requirements
• Significant home equity is required in the property

A reverse mortgage may be a consideration if you need to:

• Use your home equity without acquiring debt
• Pay unexpected medical expenses
• Eliminate your monthly mortgage payment
• Supplement your retirement income
• Pay off high-interest debt

Additional Reverse Mortgage Resources

• HUD: Top Ten Things to Know if You’re Interested in a Reverse Mortgage
• AARP: Reverse Mortgage Calculator