Senior Housing Options - Is a Reverse Home Mortgage Right For You?

By John Mazzara

For people who are around retirement age, many are finding that a reverse mortgage is one of the best senior housing options out there today. These loans can be used with an existing home and also to purchase a new home. In fact, this is becoming an increasingly popular option with many seniors today because it has many attractive benefits to offer. When you decide to go with the reverse home mortgage option, you will never have to repay the money while you are living in the home. However, once the home is going to be sold, then you will have to pay back that money that you have borrowed. Although it may all sound great, you may be wondering if a reverse home mortgage is right for you and who can qualify for one and who should go ahead and get one. So, let’s take a closer look at these options, whether you can get one, and whether or not this is the right option for you to choose today.

Are You Able to Get a Reverse Home Mortgage?
First of all, you may be wondering if you are even able to get a reverse mortgage on your home. Well, if you are going to get one of these mortgages in reverse, you’ll have to be at least 62 years in most cases. Also, there cannot be other liens on the home, although you can still get a home reverse mortgage if you are still paying on the mortgage. Outstanding debts on your home are expected to be paid off when you go ahead and get the reverse mortgage funds or before you actually get the reverse mortgage that you want.

How Much Will You Be Able to Get?
Another question that many people have when they are trying to decide if they can get a reverse home mortgage and whether it is the right idea for their needs is how much money can they get? Well, when it comes to the amount of money that you can get with one of these reverse mortgages, you’ll find that there are quite a few different factors that can influence this. It will depend on your age, the amount of money that your home is actually worth and the equity in your home, as well as the current interest rates out there. The older you are and the more equity you have in your home, the more money that you can expect to get when you decide to go with this option.

Receiving Your Cash
There are a variety of different ways that you can get the cash from the reverse mortgage if you choose this option. You will have the option to get the money in a large sum of money and you can also have it given to you on a monthly basis as well. Another option available to you is to have a line of credit where you can draw on the funds that you need or you can even combine these ways as well. You are the one that will be able to choose how you receive your cash.

When Do You Pay it Back?
So, now you may be wondering when you have to pay back the reverse mortgagee. Well, when you sell the home, move away from the home, or you pass away, the money will have to be paid back and it must be paid with interest on the money as well. You’ll also find that you will never end up owing more than what your home is actually worth.

Signs a Reverse Home Mortgage is the Right Option
So, now that you understand a bit more about how a reverse home mortgage works and whether or not you are eligible, you may be wondering if getting a reverse home mortgage is going to be the right option for you. Here are a few signs that may mean that this is a great choice to consider.

- Sign #1 - You’re Short on Funds - One sign that this may be the right option for you is that you are short on funds while you are going through your retirement. If you find yourself having to stretch your money from month to month just to make ends meet, then going with a reverse mortgage may be a wonderful idea for you.

- Sign #2 - You Need Money for Home Repairs - Another sign that a reverse mortgage may be the right option for you is if you need some money for home repairs. These repairs can get expensive and a reverse mortgage can give you the money that you need to get this done.

- Sign #3 - Medical Costs - Medical costs may be another sign that you need to choose this option for your needs. If you cannot pay all the medical costs that you have and your insurance company isn’t taking care of all of them, then you may be a prime candidate for a reverse mortgage.

- Sign #4 - Monthly Bills Keep You From Having a Great Time - Do you have monthly bills that are keeping you from having a wonderful time? If so, then you may be the perfect candidate for a reverse home mortgage. They can make it so your monthly bills are covered and you have more money to work with so you can enjoy yourself a bit more.

Learn more about reverse mortgages and reverse mortgage loan applications, visit us online at http://www.MinnesotaReverseMortgage.net John Mazzara is involved with financial services in the Twin Cities, MN. Officing out of Edina, Minnesota-John is centrally located within the 7 county MN metropolitan area. John owns three separate businesses-a licensed real estate broker associate selling Minnesota real estate since 1986-affiliated with RE/MAX Associates Plus http://www.MinneapolisStPaulHomes.com, an independent CFP-certified financial planner since 1989 with an independent Minnesota financial planning firm-Financial Planning Associates and the owner of a Minnesota mortgage broker firm-Venture Development Inc-specializing ins residential, commercial and investment mortgages.

If you are looking for someone to help you in the areas of real estate sales/purchase, mortgages, or and/or financial planning and insurance you should call John for a free 1 hour consultation to see if he can meet your needs. 952-929-2577. RE/MAX Associates Plus and Venture Development are located at 7300 France Ave S, Suite 410, Edina, MN 55435

Photo by Mattia Belletti

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