Ways to avoid doing a reverse mortgage.
If you have been considering a reverse mortgage, but just cant make up your mind if it is right for you, then maybe we should cover some alternative options.
Rent in a different location
Moving may be the right choice, even if no one really like to. Taking care of a large piece of property may not be manageable any longer. The maintenance may be too overwhelming and never really get caught up. This is rarely a first choice, because there can be so many memories. But the fact is, it just might be the right choice.
A solution for the senior that needs to move and they want to do a reverse mortgage is to buy the next home with one. After you put the required amount down, you will have no monthly mortgage payments. If you have it available, you can use your savings for the down payment on your new home, and then sell the home you are moving out of. Otherwise, use the proceeds from the upcoming sale. This solution has helped a lot of seniors since the program became available.
Leave everything the same
Not everyone needs a reverse mortgage. There I said it. If you can pay all your bills and you have enough left over to enjoy and save a little, then you probably dont need a reverse mortgage. If your life is free of financial concerns, you just wont need the extra help one provides.
Ask your heirs for help
I have seen where heirs will “lay claim” to your home, thinking it should be theirs whne your gone. They might even go so far as to try to persuade you to not get the loan.
If they want the home, and you need help, there is a great solution. Just let them pay some of your monthly expense and then leave the home to them. You could even sell it to them on a life estate, giving you the money you need, but the option to continue living in the home.
Independence is very important for most of the seniors I speak with. This makes it very difficult to even think of asking for help. If you fit into this category, then a reverse mortgage may be a perfect fit. It is your equity and you should be able to use it as needed. There is nothing wrong with using it and then leaving what is left over to your loved ones.
The article has been about choices. There are alternatives to a reverse mortgage. There are many choices available. The best way to go is not the same for everyone. If you find it is the best route, the get your loan and have no regrets.
After several years of originating mortgage loans, it surprises me on how many people think there are reverse home loan disadvantages. This loan is just a tool and needs to be used that way. Ive committed my career to demonstrating that a reverse mortgage is just a home loan and can truly help those that choose to use it.
