A reverse mortgage is a great move for some people; however, it is not for everyone nor is it necessary for everyone. There are many reasons for people to consider a reverse mortgage, but a general rule of thumb we tell people is that if the majority of their money is going to the mortgage then it could be a good idea. You may be wondering why you can’t just get a reverse mortgage anyways, regardless if you need it or not, and that’s because this decision is not one lightly make. A reverse mortgage is serious and can take out a chunk of your home’s equity, something you work hard to build up over time. This is the last thing you want to do if you do not need to. But don’t worry if you are unsure of what to do, at Ace Mortgage Loan Corp. our team is here to help you through the entire process. We can work with you to make sure you are making the correct decision for you and your family.
Should You Pursue a Reverse Mortgage?
Reverse mortgages are most definitely not for everyone. Not only are they hard and expensive to keep up with but they can come with some serious repercussions if not kept up with. There aren’t many situations where the reverse mortgage process is worth it; however, if you fall into the situations where it is worth it and you think you can swing it, by all means, go for it. Here are just two examples of a situation where it could be a good idea for you:
You Aren’t Going to Move Anytime Soon
If you are thinking of taking out a reverse mortgage and are planning on staying in your current home then this could be a good idea. The reason being is that reverse mortgages come with a lot of up-front costs that can add up to be pretty expensive. Included in these fees are lender fees and origination fees. The amount of these fees is determined by how much your home is valued out. There are different kinds of reverse mortgage payment plans too which can greatly change how much the up-front fees are along with how much you are now going to owe each month. Once this plan is decided you have to then go ahead and pay for any closing costs such as the title insurance, home appraisal, and home inspection. Because of all of these costs you are going to want to make sure you are staying put, making them worth paying.
You Can Pay for Monthly Costs
When you decide to go through with a reverse mortgage you are going to be facing a lot of monthly payments. This isn’t so bad if you can afford it; however, it’s important to make sure you can budget this amount every month. Some of the fees you are going to be expected to pay are property taxes, homeowners insurance, home maintenance, and any other fees you were required to pay before such as garbage pick-up. With a reverse mortgage, there is no room for mistakes when meeting these payments. The due dates on each are very strict and falling behind on the payments could result in some serious repercussions. Falling behind could result in the lender making your home loan due and payable. In the very worst-case scenario, the county could get involved and take matters into your own hands. Ending up in this situation is not ideal. If you think there is even the slightest chance you could fall behind, do not go through with a reverse mortgage. The last thing you want is your home becoming collateral damage.
Here at Ace Mortgage Loan Corp., we can help you through your reverse mortgage process. If you are unsure if a reverse mortgage is a good idea you can always refer to this guide or give us a call. Our team would love to help you out and find out which options are the best fit for you. To learn more about reverse mortgages and our other services, give us a call today at (954) 906-6815. We are looking forward to assisting you!