What are the Benefits of a Reverse Mortgage
Reverse mortgages are an available option for seniors that own their home or have low balances left on their mortgages. This type of mortgage will convert the equity of the home into a lump payout, a line of credit, or a monthly payment. Seniors may choose one of these options or combine them. When a senior acquires a reverse mortgage, the loan will have no monthly fee as long as they continue to live in the home.
There are many benefits a senior will experience from a reverse mortgage. Here a few of them:
Remain in Your Home
You may continue to live in your home with no monthly mortgage payments. You will be able to use the equity you’ve already built up for whatever you choose.
Because the reverse mortgage is a loan, any funds you receive — either as a monthly payment or as a lump sum — are tax free.
No Restrictions on Use
You may choose to use the funds in any way you like. You may pay off other debts, make purchases, or take a much-needed vacation.
Proceeds Options Are Flexible
You may choose how you would like to receive your funds. You may either receive a lump sum or monthly payments. You may also choose a line of credit. Depending on your wants or needs, you can combine all three options.
Federally Insured Protection
Reverse mortgages are federally insured. If the lender holding your reverse mortgage loan defaults, you will continue to receive the benefits of the loan.
Other Assets Remain Safe
If you have your home in a reverse mortgage, your other assets or income are not considered for the lender.
How We Can Help
The benefits of a reverse mortgage outweigh the negatives for seniors. It’s a great option to help with other debt, increase a financial portfolio, or simply enjoy your golden years by taking vacations or making purchases you otherwise weren’t able to do, and the experts at Butler Mortgage can help. Call us today to speak with one of our financial specialists and come up with a plan that suits your unique circumstances. For questions, or to take the first step towards a reverse mortgage, call us today at 407-931-3800.