By the time you retire, you want to make sure you’ve got enough funds to live on comfortably. However, whether through unforeseen circumstances, emergencies or major home repairs, you might find your funds depleted a few years into your retirement. If your financial security is at risk and you’re starting to find it difficult to make ends meet, a reverse mortgage offers you a way out of that situation.
It’s basically a mortgage that allows you to take a portion of your home’s equity and turn it into instant funds. While there are three types, the Home Equity Conversion Mortgage or HECM is specially designed for seniors, offering them a way to enjoy greater financial security as they live out retirement.
While the advantages are obvious—you get funds to help pay off your bills, take care of major repairs in your home or keep up with your property taxes—a HECM does come with its own financial consequences. One of these is that you might not leave enough assets for your heirs. However, if this isn’t a concern, then a reverse mortgage might just be the financial tool you need. You won’t have to move anywhere just to downsize, or stress needlessly over the thought of having to come up with the monthly payments on your insurance or property taxes. With a reverse mortgage, you can enjoy the kind of financial security necessary to your peace of mind.
There are plenty of reverse mortgage companies out there. So, finding one is easy. Finding the right one, though, can take some time. Shop around, compare quotes and interest rates and find out as much as you can about the lender’s reputation. These should help you find the lender that best suits your needs and financial situation.