If you are thinking about getting a reverse mortgage, there are some important questions you should ask yourself first. These questions will help you assess whether a reverse mortgage will fit your needs and help you achieve your goals during your senior years.
Before Applying For a Reverse Mortgage, You Should Consider These Questions.
- How much equity do I have? To get a reverse mortgage, you need to be able to borrow against your home equity. That means if you have plenty of equity in your home, you may be eligible. But if you do not, you might need to look into other solutions.
- How long do I want to live in my current home? A reverse mortgage is ideal for homeowners who plan to stay put. The reason why is that reverse mortgages do not come due until there is what is called a “maturity event.” Selling the home is a maturity event. So, if you plan to sell it, the loan will come due. But if you plan to live there permanently, it may not come due until a different maturity event, such as the death of the last borrower.
- What do I want to do with my reverse mortgage? It is a good idea to figure out your goals before you take out a reverse mortgage. Do you want to create an emergency fund and make it easier to keep up with your bills? Pay off medical debt? Take a vacation or finance your hobbies?
- What would be the best way for me to receive my reverse mortgage funds? Ask yourself whether it would make more sense for you to request the supplement to your income as a lump sum, in installments, or as a line of credit.
- What is my health situation? Your health in the future will have an impact on your ability to remain in your current home. In some cases, it may be hard to make predictions, but in others, you might have good cause to believe you will or will not be able to stay where you are now.
- What are my heirs’ plans for the future? If you have not already spoken to your heirs about what they want from the future, now is the time. Ask them what they would likely do with your home once they inherit it. Would they prefer to sell it or stay in it?
Apply for a Reverse Mortgage in San Diego
When you call me for a consultation, I can walk you through these and additional questions to help you figure out if a reverse mortgage is right for you. I can then help you apply quickly and easily. Please give me a call at (619) 857-7191 to schedule your consult.
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