If you are a senior living in Maine looking to raise finance to help in retirement, you may have heard the term reverse mortgage. There is still a lot of confusion and misconceptions surrounding this financial product. Here we answer the question "What is a reverse mortgage?" After reading this you should be able to decide whether this is an option that is worth pursuing.
A reverse mortgage allows you to turn the equity in your Maine home into cash. It is only available to people aged 62 or over, so it tends to be used by retirees as a way of supplementing their income.
You can receive payment by way of a cash lump sum, a line of credit or a monthly income. The attractive thing for many customers is that there are no monthly payments to make, unlike a normal mortgage. The money that is drawn down is tax-free.
There are many baby boomers coming up to retirement that are realizing that the amount of income that they are going to receive during their retirement is not going to be sufficient to live on. This has led to there being a big increase in interest in reverse mortgages.
The money raised can be used for any purpose. This includes supplementing existing Maine retirement provisions, paying for medical care or carrying out modifications to the house such as installing a ramp or downstairs shower. You could even use the money to go on a holiday of a lifetime or buy a new car.
While this sounds very attractive, are there any downsides to a reverse mortgage? The main one is the amount of equity in the property will be reduced when you come to sell it. This maybe important to you if you were planning on having your children inherit your house.
There are plenty of helpful resources available to you to further learn about reverse mortgages. You can choose to speak to housing counselor or find resources online.
Define Reverse Mortgage in Maine
Many senior debtors were too uneasy with adjustable rate HECM loans since of the uncertainty involved with altering time. To assist them overcome from this, fixed rate products have been presented wherein the senior property owner do not have to fret about the rates of interest involved with their reverse home mortgage plan.
One of the most fascinating loan plans is the arrival of new jumbo HECM programs. It has actually been a terrific worth addition for those customers who own a greater value residential or commercial property. The customers have numerous options like various margins, features and payment alternatives to select from while taking jumbo HECM loans.
While it doubts to make sure which one will suit your situation, you can look for aid from professional reverse home loan consultants who will guide you to take the ideal action for your future. You can help them identify your requirements and they will suggest you with the suitable plan to assist you live peacefully while keeping the title of your home.
Each reverse mortgage program has their own distinct requirements, which can be identified and sorted out with the assistance of trusted lenders and expert counselors. So, understand your requirements and obtain only the portion you need while you prepare out to make an application for this type of loan.Reverse Mortgage Calculator | Reverse Mortgages Pros And Cons