Reverse Mortgage Tips to Remember

A reverse mortgage can be just the ticket you need to get more out of your retirement. If you are thinking about applying for one, it is important to know all the benefits and how it can be the right financial tool for you.

 Benefits of A Reverse Mortgage

1. Taking out the type of reverse mortgage that is ideal for you. Did you know that there are multiple types of reverse mortgages? A lot of borrowers assume that every reverse mortgage is the same, so researching the different types before they sign on one is very important. But if you do take the time to learn about the different types of reverse mortgages, you can choose the one that will be most beneficial for your scenario. Some examples include HECM reverse mortgages, jumbo reverse mortgages, HECM for purchase loans, and reverse mortgage refinances.
2. Working with a mortgage company that specializes in reverse mortgages. Most mortgage companies offer reverse mortgages, but most also do not specialize in them. Instead, they do most of their work offering regular home purchase loans and do reverse mortgages on the side. The more experience a company has specifically with reverse mortgages, the more knowledgeably they will be able to guide you to choosing the loan product that will help you achieve your goals in retirement. So, it pays off to work with a specialized expert.
3. Think about your plans before taking out a reverse mortgage. There are a lot of questions you should ask yourself about your future plans before you take out a reverse mortgage. How long do you realistically plan to live in your home? Do you want your heirs to be able to live in your home after you are gone? When you carefully examine your future plans, you will know for sure if a reverse mortgage is right for you.
4. Choosing the right disbursement option. Did you know that you can claim the funds from a reverse mortgage as a lump sum, a line of credit, or in installment payments that are deposited directly into your account every month? Each of these different disbursement options features distinct pros and cons, and each is suitable for different scenarios. It’s best if you learn about their advantages and disadvantages, so you can choose the disbursement option that will be the best fit for your needs.
5. Talking to your heirs. What do your heirs want to do with your home after you are gone? Are they likely going to want to sell it or keep it? If you do not have this conversation with your heirs, you are never going to know. A lot of people assume that they know what their heirs would want. But surprisingly, your heirs could be more attached or less attached to your home than you think. So, it is best to bring up your thoughts about a reverse mortgage with your heirs directly before taking one out. Ask questions about what they may want in the future.
6. Maximize your income with a reverse mortgage. Many people who take out reverse mortgages are simply taking the option that is going to maximize their income during their retirement years. So, if you are looking to do the same, it is well worth looking into a reverse mortgage to explore the possibilities.

Contact Michael Harrell Group Today

Now you know some valuable tips that help borrowers when they are thinking about taking out a reverse mortgage. Michael Harrell Group can walk you through your application and help you make the choices that are right for you. To get started now, please give us a call today at (214) 269-3593.