• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
Mummy..Mummy..MUM!!
  • About Me
  • Work with Me
  • Disclosure Policy
  • Navigation Menu: Social Icons

    • E-mail
    • Facebook
    • Instagram
    • Pinterest
    • Twitter
    • YouTube
  • Family Fun
  • Family Holidays
  • Travel
  • Family Day Trips
  • Kids Crafts
  • Learning Activities
  • Home and Interiors
  • Family Health
  • Reviews
Home » Increase Your Retirement Income with a Reverse Mortgage

Increase Your Retirement Income with a Reverse Mortgage

November 6, 2020 by admin Leave a Comment

You may be years or days away from retirement. Whichever the case may be, you definitely want an enjoyable post-retirement lifestyle. Although your paychecks are steady and enough to meet your present and future needs, you can’t be sure of the same income size once you are no longer in the working class. So, how do you cater to your expenses? A loan may seem appropriate, but not just any financial loan. A reverse mortgage will come in handy at this point. However, you should know what it means and how it works before applying for one. And this guide provides accurate details.

Reverse Mortgages vs. Traditional Home Loans

Most retirees with fewer or no income stream may opt for traditional home loans. However, these “seemingly” financial systems have huge clauses that may leave one hanging out to dry. The urge to repay the loan immediately can make any homeowner uncomfortable as such an individual would have to go all the way out to pay the lender or risk foreclosure.

However, with a reverse loan, you get paid by your lender and still keep your home. In other words, the reverse mortgage puts money in your pocket. A part of your home equity is converted into payments, which you can access to meet various expenses. There is no repayment, as long as you live in your home.

How to Get a Reverse Mortgage

“Do you need a loan?” this is the question that should be on your mind before contacting your lender. If your home equity is lesser than the amount you intend to take, then you don’t need a reverse mortgage and should consider other options. Also, the required age to obtain this loan is 62 years and older. For this reason, most people think of it as a retirement loan.

When applying for a reverse mortgage, your lender will run a credit check using a reverse loan calculator to determine your eligibility and creditworthiness. This estimation tool puts into consideration your home’s age, location, and condition. According to federal law, you can’t borrow your home’s total value. It is also worth mentioning that your home should be your primary and permanent residence. Reverse mortgages don’t apply to rented apartments or vacation homes.

There is More

One thing that makes a reverse mortgage unique is its flexibility. Unlike the traditional loan that takes money from you, a reverse loan puts money in your pocket. However, you have to keep up with other expenses, like property taxes, home insurance, and maintenance cost. For this reason, you have to be sure that you need this loan. As discussed before, your lender will determine your eligibility using a reverse mortgage calculator.

Once you qualify for a reverse mortgage, you can set up your funds in any three ways. You can set it as a line of credit – this works as your credit card and gives you the avenue to borrow funds whenever you want. Another option is to receive your payment in a lump sum. Going with this alternative can help you address several needs at once. However, if you want to receive monthly income, then set it as a monthly payment plan. With this option, you get paid every month to cater to your monthly bills.

Filed Under: Family Finances

Previous Post: « Hartland Quay and Lighthouse
Next Post: Essential Baby Buys For First-Time Parents »

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Primary Sidebar

Search my blog

Some more stuff to read!

  • How to Set and Smash Career Goals While Raising Kids
  • Finding the Perfect Stay Made Easy: A Cozycozy Review
  • Spousal Maintenance Agreements Are Worth Their Weight in Gold
  • Jingle All The Way! Family Skiing Over Christmas
  • Modern Car Hacks for a Budget-Friendly Lifestyle
  • 6 Unforgettable Day Trips for an Epic Aruba Adventure
  • Health Differences To Keep An Eye On In Winter
  • 5 Things You Can Do in the Midst of a Cash Emergency While Travelling
  • Encouraging Independent Play In Toddlers And Young Children
  • How Can Reading Tutoring Help Kids Who Struggle with Phonics: Unlocking Literacy Potential

Footer

CozyCozy search
Child skiing

Copyright © 2025 · Market theme by Restored 316