5 Major Benefits of Reverse Mortgage Loans

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If you’re a senior aged 62 or older, own your home, and are looking for a way to increase your income and/or quality of life during retirement, you might like to consider a reverse mortgage loan.

In this post, we’ll unpack 5 of the major benefits of a reverse mortgage.

1. You Retain Ownership of Your Home.

Without a doubt, this is one of the primary benefits of a reverse mortgage.

Contrary to what some people may believe, the lender of the loan doesn’t take ownership of the collateral you’re borrowing against (a.k.a. your home). Provided that you adhere to the terms of the loan and continue paying your taxes and insurance, of course.

2. Enhance Your Finances

Another one of the many benefits of reverse mortgage is the ability to enhance or increase your income/finances. Throughout the term of the loan, the lender makes payments directly to you. If you’re in need of additional funds, this is a major way you can benefit.

Additionally, these payments can be received in a variety of different ways. For example, you might prefer to receive them as a credit line or through a monthly payment. Whatever you decide, we’re sure there’s an option that will work for you.

3. No Monthly Mortgage Payments

A reverse mortgage is quite literally exactly what it sounds like. As opposed to paying a monthly mortgage payment on your home, you’ll actually receive funds.

Not only will you lessen your financial burdens, you’ll also bring in an additional source of income. It’s a win-win!

4. The Lifetime of Other Retirement Savings Can Increase

With a reverse mortgage providing you with an additional form of cash flow, you’re likely to be less inclined to withdraw from other retirement funds you’ve saved, such as a 401(k) account. As a result, you’ll ultimately prolong the lifetime of any other savings accounts you may have, while simultaneously delaying the payment of taxes on them.

5. A Reverse Mortgage Loan is Federally Insured

Finally, one of the best benefits of reverse mortgage is that these loans are insured by the federal government. What this means for you is that you’re protected. In the event that the total amount of funds disbursed to you throughout the term of the loan exceeds the worth of your home once sold, the government will cover the difference.

If that’s not an example of a fantastic benefit of a reverse mortgage loan, we don’t know what is!

A Final Note on the Benefits of Reverse Mortgage

If by chance you require a different type of loan, there’s no need to look further. We offer many different loan programs and are happy to assist you in finding the right option to suit your needs.

If you would like more information regarding the many benefits of a reverse mortgage loan, please contact us! We’ll be more than happy to provide you with the information and answer any questions you may have.