Reverse mortgages are for homeowners who are at least 62 years old, have accrued a decent amount of equity (roughly 50%), and don’t want to have a mortgage payment for the rest of their lives.
A reverse mortgage is a fairly complex product that warrants an in-depth conversation with your financial advisor. It’s geared for fixed-income individuals who want to stay in their homes while alleviating the burden of monthly mortgage payments. It’s also advocated by financial planners whenever there’s a downturn in the stock markets and their clients don’t want to liquidate their assets; a reverse mortgage allows them to free up a cash pool and avoid pulling money out of stocks or bonds.
Essentially, a reverse mortgage gets paid off just like any conventional mortgage would, though it’s structured differently. If, for example, a son or daughter finds themselves needing to sell the property of a deceased parent who had a reverse mortgage, they will have 12 months from the parent’s passing to sell the property. Since a reverse mortgage loan is not to exceed the home’s value, the proceeds from the sale of the property will pay off the loan.
Bay Equity Home Loans has several reverse mortgages specialists ready to answer your questions and explore whether taking out a reverse mortgage is right for you. Call Tom Ross at 602-791-5861 or email him at firstname.lastname@example.org. If you have any real estate-related questions, please don’t hesitate to reach out to us. We’re always here to help!