Italian Real Estate

Reverse Mortgage

Posted on | October 3, 2011 | No Comments

A reverse mortgage is a great way for seniors to get some cash inflow to supplement their retirement funds. Whether it is to help with medical expenses or to simply get the most out of your retirement. However getting the mortgage can take some doing as there are some things you may want to consider when looking into getting one.

Reverse Mortgage Screening Questions

  1. Ask them questions. When you approach the bank to get this type of mortgage, you want to make sure you know everything there is to know about it. Make sure you ask questions and understand everything fully so that you do not end up making any mistakes down the road.
  2. Wait until you are older. The older you are, the more money you can get. So if you do not need this type of mortgage then you may want to wait a while so that you can get the most out of it.
  3. How to get the money. In this type of mortgage there are several means of actually getting the money. You can get it in the form of monthly payments, or one lump sum or even a line of credit. You need to decide just which method you want to use when you go in to get your reverse mortgage.
  4. Know your limitations. Even with this type of mortgage you still need to pay property taxes and maintain your home. If you do not fulfill these requirements the bank may collect on what you owe. So make sure you know what restrictions there are and ensure you abide by them.
  5. Be cautious of scams. Scam artists love this type of thing as they find it easier to target seniors. They will often offer to help you find the mortgage you are looking for as long as you pay them a fee. It is best to avoid these types and only go with verified and approved financial consultants to help you.
  6. Consider the costs. These types of mortgages can be rather pricey so make sure you look into just how much the bank expects you to pay. You can choose to pay all of it, or just some of it, in cash or add it to the loan amount.
  7. Make sure you will still qualify for social security programs. In some cases if you take out a reverse mortgage you may no longer qualify for various programs such as medicade. You need to be aware of this possibility and make sure to check whether or not this will effect you. If it does effect you then you may want to look into a mortgage that does not disqualify you from such social security programs.

A reverse mortgage is a great way to get some cash flow during your retirement but there is a lot to consider when trying to get one. Knowledge is your friend and it is best to educate yourself so that you get the best deal out there and so that you know all the risks and restrictions involved.

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