If you are 62 and older and own a home, you may be able to opt for a reverse mortgage. When you use a reverse mortgage, home equity is withdrawn as cash to pay for expenses like home improvements or debt consolidation.  You do not have to pay taxes on the proceeds or make monthly mortgage payments. Of course, there are requirements you have to meet in order to qualify. Read more about the benefits of a reverse mortgage.

Pros

After you retire, there are still monthly expenses to be paid. These expenses can begin to add up, leading you to find more options to supplement your income. Luckily, a reverse mortgage can help. Bankrate states, “A reverse mortgage can be a solution for consumers ages 62 and older who own their homes outright — or at least have a considerable amount of equity to draw from.” Some seniors use this loan to pay for living expenses, repaying debt, covering healthcare expenses, and more. It is also a way for seniors to enjoy retirement, giving them the freedom to purchase a vacation home or another property.

Cons

There aren’t too many drawbacks for a reverse mortgage, but you must keep some things in mind. According to Bankrate, “the borrower must maintain the house and pay property taxes and homeowners insurance.” Furthermore, you have to be living in your home as a primary residence, as well as keep your property in good condition. It is also good to note that closing costs can be expensive too.  

Conclusion

If you are interested in a reverse mortgage, contact the team at American Mortgage Resource Inc. We have a variety of loan options available and can help you make the right decision. For more information on our reverse mortgage services, call us at (617)-972-8588. We look forward to talking with you!