How a Reverse Mortgage Works
A reverse mortgage loan converts real estate equity into spendable cash for qualified borrowers that are homeowners 62 years or older. Instead of making monthly mortgage payments, like traditional mortgages, reverse mortgages allow homeowners to receive money from the equity in their home, either as a lump sum or through regular payments. The borrower must continue to pay their property taxes and insurance and maintain the home. The loan will need to be paid back when the borrower ceases to use the home as the borrower’s primary residence, passes away, or defaults on the loan terms.
The equity cashed out and received from the reverse mortgage may be spent as you wish to accomplish your resolutions and enjoy your golden years, provided you continue to pay your property taxes and insurance and maintain the home.
From the mortgage loan officers at Hartford Funding LTD, here’s how a Reverse Mortgage may be able to help you achieve your New Year’s Goals:
Pay off Your Current Home Loan(s) and Replace With a Reverse Mortgage
Your home does not need to be entirely paid off to apply for and receive a reverse mortgage. You can pay off existing home loans with the cash received from the reverse mortgage loan, which will replace those debts as a new loan.
Get Rid of Other Debts
You may be able to pay off other debts, such as medical, student, personal, etc., with the proceeds from the reverse mortgage. As well, it's normal to have more doctor and healthcare bills as you age, so the extra cash may be able to help you stay prepared for any unexpected medical needs.
Travel More
If seeing more of the world around you was on your resolutions list this year, you may be able to use the loan to finance future trips and vacations. Retirement is a great time to travel and explore your surroundings, and the cash from a reverse mortgage may be able to help you achieve this goal.
Renovate Your Home
If you'd like, you may be able to put the cash from your home's equity right back into your house to make those much-needed updates or dream renovations you've wanted a reality. Use your money to make your home feel more comfortable than ever during retirement.
Enjoy Your Retirement Free of Financial Stress
Are you looking to enjoy a new hobby? Visit family more? Try out new restaurants? Whatever boxes you are looking to check off on your retirement or resolutions list, if you qualify, the cash you get from your reverse mortgage loan may be able to help you. After all, you deserve to enjoy this time in your life to the fullest!
To learn more about reverse mortgages and to see if you qualify, contact the mortgage loan officers at Hartford Funding LTD.
If you’re looking to apply for a reverse mortgage on Long Island, consider turning to Hartford Funding LTD. We will patiently work with you to offer all the information needed to determine if a reverse mortgage is right for you and then guide you carefully through every step of the application process.
To learn more about our services and schedule an appointment with our mortgage loan officers, call us at (516) 595-7646 or visit our website.