While these mortgage types may have had somewhat of a bad rap, they actually can be highly beneficial for a variety of clients with different backgrounds, when taken on with a bit of knowledge and care. Here is what you should consider.
Reverse mortgages are beneficial typically to homeowners who have substantial equity in the home and are without other primary sources of income. Aging homeowners typically find this type of mortgage suitable to their situation. Here are some of the reasons why you may want to look into a reverse mortgage:
- Seniors over the age of 62 have the ability to use a reverse mortgage to access the equity of their current residence AND to purchase a new home (in most US states)
- Older adults, particularly in their 80s and 90s, are taking advantage of the market and are liquidating their primary residence in order to seek out senior living communities, making a reverse mortgage a great option for these homeowners