What is a Reverse Mortgage?
A financial agreement in which a homeowner relinquishes equity in their home in exchange for regular payments, typically to supplement retirement income. This type of loan is for seniors ages 62 and older.
Should you get a reverse mortgage?
While it can be a great way to supplement your retirement income, there are some things to watch out for:
⚠️ High fees
To get and finalize your reverse mortgage, you’ll be paying a range of fees that can add up quickly.
⚠️ Variable or high-interest rate
The interest rate is often higher than that of a standard mortgage. It may also be variable, rather than fixed, which means it can increase in the future.
⚠️ Less money for your heirs
The remaining amount of your estate will need to be repaid when you’re no longer here, usually in a specific period of time, which can be costly and stressful for your family.
This is why, in some cases, downsizing can be a better option. If you’re deciding between the two, contact us to discuss your options and make the best choice for your needs.