Today’s Reverse Mortgages Are Good For Many

Is A Reverse Mortgage Right For You?

In our September Blog we dispelled the myths around today’s reverse mortgage, explaining how they have changed over the years and how they serve the borrowers that use them. Yet some of readers might still be wondering if this is the right path for their unique situation. Let’s look closer and identify the ideal individuals who would benefit from a reverse mortgage.

You Meet The Basic Criteria

First off, let’s make sure you meet the minimums. You will need to be at least 62 years old and live in the home, as it should be your primary residence. This doesn’t mean you can’t enjoy long periods away from the home, you just must live in it the majority of the year and not rent it out. You will also need to be clear of any delinquent federal debt. 

You Want To Enjoy These Years But Need A Little Extra Cash

Many homeowners are simply looking to borrow smaller amounts to supplement their bills or other expenses. Combine that with those looking for a little extra travel or enjoyment money, and this scenario affects many, many retirees. The reverse mortgage works like a line of credit that can’t be frozen or taken away as long as borrowers follow the requirements such as paying their home insurance and property taxes. For those who have been waiting for low rates to join the reverse mortgage borrower ranks, the time is now. 

You Are An Investor, Concerned About Market Fluctuations

For individuals concerned they will need to tap into their investment portfolio when it is at a low, similar to what we saw with the market dropping in Spring of 2020, a reverse mortgage might save a good deal of money. Having to sell investments when they are particularly low in the market can cause significant money loss. So many homeowners in this scenario choose to use a reverse mortgage as a safety net to borrow from, protecting the value of other assets as they can hold on to valuable stocks and bonds until the market calms down and cooler heads prevail.

You Want To Do Home Renovations To Your Forever Home

For the homeowner that loves their home and never plans to leave, yet wants to do some improvements that need extra funds to complete, a reverse mortgage might certainly fit the bill. Additionally some borrowers have required improvements coming down the road and may choose to get the money set aside now, while interest rates are very low

Whatever your questions on reverse mortgages are, Nordic Home Loans is happy to address them. We have consulted many people through this decision, and as a financial planner as well as a lender, we have the expertise to help. Please contact us today to see how we can assist you.