If you are a retiree that has a lot of accumulated wealth because of property investments but not low cash savings, then a reverse mortgage loan is a great option to consider. You will find that this type of mortgage helps secure your retirement by allowing you to convert your assets into cash payments that can help cover exceeding expenses during retirement. Your home or property is generally considered an illiquid asset; however, you can quickly get a monthly return with this type of mortgage loan.
One of the primary features of a reverse mortgage is that it allows homeowners to continue living in their homes despite receiving monthly payments. The mortgage prevents liquidating your assets to downsize or relocate to a new destination. This means that as a retiree, you don't have to worry about moving out of your neighborhood anytime soon. For more information about how this phenomenon works, reach out to one of our team members.
Easily Pay Off Existing Loan
Unlike a conventional mortgage, a reverse mortgage loan is designed to help you keep paying off your existing loan with the money you receive. Despite paying towards a home loan, you will still be left with ample funds to help with monthly expenses during your retirement. A conventional loan is a more preferred option for young earners than retirees. Schedule an appointment with our team members to learn more about the difference between these loans.
No Monthly Mortgage Payments
Did you know that in a reverse mortgage loan scenario, payments are made to you? This means that as long as you continue living in the house, you have a reverse mortgage against it, you will not need to pay any monthly premiums. The received funds are paid off when the home gets sold or if you relocate to another place.