My Mortgage Blog

Saving enough for retirement can be a challenge.  As people continue to live longer, retirement savings are being stretched further over many more years. However, there is an option that is increasing in popularity – a reverse mortgage.

All too often homeowners are not fully aware of all their financial options -- some have accumulated a lot of equity in their homes and may be house rich but cash poor. They consider downsizing their home and leaving the community they love in order to make ends meet. In some cases, a reverse mortgage option might make sense.

So, what is a reverse mortgage and how does it work?  In a nutshell, it’s a loan secured against the value of your home. However, unlike a traditional first mortgage, a Home Equity Line of Credit (HELOC) or a second mortgage, you are not required to make monthly mortgage payments for as long as you live in your home. And, you will maintain ownership and control of your home.

There is a maximum loan to value (LTV) amount that the lender would consider advancing; so you can be assured you will not erode your equity. For those with a desire for cash-flow, for those needing medical assistance in the home and the need to pay for it, for those who wish to fulfill dreams of travel or for those who may want to leave a living inheritance for family, a reverse mortgage may be for you! Contact me today for more information.