>> Jan 4, 2013
A reverse mortgage is a great idea, especially when you are turning the years towards the later stages (post 62, to be technically correct) and your regular income source is depleted owing to retirement. Taking out a reverse loan on your home can give you a much needed cash injection for sustaining a number of costs apart from the maintenance of your home alone.
As most real estate settlers like Ali Farahpour are of the opinion, a reverse mortgage is a very rosy prospect but like every rose, it comes with its share of thorns. This is why, it is recommended that you reserve the option of a reverse mortgage for the following situations (and not use it as a fund to finance your splurging):
1. Health Care
With age, the inevitable breakage of the body is what must be hounding your thoughts. Well, you can’t be blamed for the same owing to the fact that medical care with a full time care person at home is something that not many people can afford without an extra income source. This is one of the reasons why you might choose to get a reverse mortgage on your home in order to finance the bills that this healthcare accrues.
You can talk with the mortgage lender to fix the amount at the same level of the healthcare bill or to be directly credited from the lending account. Either way, this is something that mustn’t be taken lightly.
2. Maintenance Of The Home
Unless you decided to buy a home when you were 60 and paid off the mortgage within 2 years of taking it out, the chances are quite high that by the time you are 62 your house is a pretty old one. This means that you will need to shell out a considerable amount of money for all the repair and maintenance work that your house must need. With increasing prices, the maintenance and repairing companies aren’t cheap nowadays. This is why a reverse mortgage loan on your home might be a good idea.
Remember that efficient maintenance and repair of the home is a part of the reverse mortgage loan contract and you will need to ensure this aspect come what may.
3. Lifestyle Maintenance
It is difficult to maintain he same lifestyle for you and your family once you have decided to retire and the sudden fall in lifestyle can be unsettling for many. You can easily take care of this problematic satiation by taking out a reverse mortgage on your home and use the money to finance your lifestyle that your retirement fund or pension can’t provide.
There are a number of other reasons for which you might decide to take out a reverse mortgage on your loan and remember that the necessity for the cash differs from person to person. Measure the severity of your situation and the pros and cons of a reverse mortgage before taking the decision.