Important Considerations for Retirees Considering a Reverse Mortgage

reverse mortgageAs you retire, you might face some financial challenges. If you own your home or have a small mortgage, a reverse mortgage could help you cover your expenses during retirement. A reverse mortgage allows you to borrow money based on the value of your home.

This can give you extra income while you continue to live in your home. But before you dive in, there are some things you should know to see if this is the right choice for you.

Understand How Reverse Mortgage Works

Reverse mortgages in Myrtle Beach are available to homeowners who are at least 62 years old, and you must live in the house as your main home. Unlike a regular mortgage where you make monthly payments, the lender pays you when you get this type of mortgage. The amount you get depends on your home’s value. You still keep the ownership of your home, but you must continue paying property taxes and home insurance.

Explore Payment Options

You have choices on how to receive the money from the mortgage, such as monthly payments, a credit line, or a lump sum. Consider your current needs and how you plan to use the money to decide which option suits you best.

Check Your Home Equity

This type of mortgage is a good choice if you have a substantial amount of home equity. If you still have a small mortgage in retirement, talk to David Stacy Reverse Mortgage Specialist to understand your options.

reverse mortgageBe Aware of Fees

When you get a Myrtle Beach reverse mortgage, there are initial expenses like appraisal fees, loan origination fees, and closing costs. You’ll also need to meet with a counselor to ensure you understand the loan. Additionally, there might be loan servicing fees and mortgage insurance premiums.

Think Long-Term

Remember that the loan becomes due when you pass away or decide to move out or sell your home.

Discuss Reverse Mortgage with Family

If you plan to leave your home to your heirs, consider how this type of mortgage might affect that. Assume you’ll use up all your home equity, which could mean selling the home to repay the loan. Talk to your family members about your intentions.

Plan Your Use of Funds

Decide how you’ll use the money from the mortgage. Whether it’s for home renovations, daily expenses, or a special trip, having a plan is important, especially if you’re concerned about running out of money in retirement.

Explore Other Options

If you have limited financial resources and no family members interested in inheriting your home, reverse mortgages may make sense. However, take a moment to look at your overall retirement plan. You might discover better ways to use your home equity or manage your finances, like refinancing your current mortgage, selling your home, or downsizing.

For more information, call David Stacy Reverse Mortgage Specialist now. Make informed decisions about your financial future.

David Stacy Reverse Mortgage Specialist
Myrtle Beach, SC 29577
(843) 491-1436

We serve all of Horry County including: North Myrtle Beach, Carolina Forest, Socastee, Forestbrook, Conway, Surfside Beach, Little River, Myrtle Beach, Forestbrook