For retirees and senior citizens, there are numerous different strategies for finance and income. Sometimes, older adults have such deep savings that, by the time they retire, they can coast on the money they’ve saved without any need for additional income or financial assistance. In other cases, though, seniors might be ‘cash poor’ but ‘asset rich.’ In this kind of situation, a reverse mortgage might be a smart financial solution. Sitting down with a reverse mortgage specialist to learn more about this type of loan setup is worthwhile if you are over the age of 60, and in need of some extra cash.
Understanding the Basics of a Reverse Mortgage
At Reverse Mortgage Finance Solutions (RMFS), our reverse mortgage brokers can help you determine whether a reverse mortgage is the right strategy for you. We always visit the client (where possible geographically) for a face-to-face meeting before taking any steps to initiate a reverse mortgage. Only during an in-person meeting can we learn the details of your unique financial situation so we can advise you adequately. Before you meet with us, though, you’ll probably at least want to know what a reverse mortgage is and why it can be beneficial in some situations.
When you have a traditional mortgage on a house, that means the bank has paid for a certain percentage of your home through a loan. Over time, you make regular payments on this loan, with the goal of (slowly) paying it off over time.
A reverse mortgage, as the name implies, turns this process around. Instead of paying down a principal to build equity in your home, you are essentially trading equity in your home in exchange for cash. You retain ownership of the home, and may continue to reside there, The loan is a ‘life-time’ loan, which means there is no defined term. The loan is repayable when you choose to sell the property OR the last surviving borrower ceases to reside in the property.
In Australia, reverse mortgages are available to home-owners over the 60. As mentioned previously, they are generally used by individuals or couples who are Asset Rich but Cash Poor.
Learn More about Reverse Mortgages by Meeting with Our Reverse Mortgage Consultants at RMFS
If you think a reverse mortgage might be the right choice for you, you should sit down with our reverse mortgage consultants at RMFS. We can review your financial and asset portfolios, advise you on the pros and cons of reverse mortgages, assist you in exploring alternative options and ultimately help you arrive at the right decision for you and your finance. Always, you can expect friendly and professional service from our reverse mortgage specialists.
The most important thing to do when considering a reverse mortgage is to be well advised. Getting all the information you can about reverse mortgage loans before you apply will result in a better, more knowledge-backed decision and a more efficient loan. RMFS and our team of experience reverse mortgage advisors are the right people to help you decide. Contact us today to get started.