Home equity is typically used to access cash for emergency expenses such as unexpected healthcare bills and major home repairs. It is also used to claim a profit upon selling the home or to pass an investment down to beneficiaries. A reverse mortgage loan, however, makes it possible to incorporate your home investment into your overall retirement plan in Florida.
If Your Mortgage Is Paid in Full
If you have fully repaid your mortgage, you may consider selling your home and collecting the equity to purchase a new home or move into a rental community. However, if you wish to continue living in your home, but want to access your home’s equity, you can use a reverse mortgage loan to receive payment without having to sell.
If You Are Still Making Mortgage Payments
If your mortgage still has a balance, you can use a reverse mortgage to end your monthly payments and start receiving income. The loan is first applied to your mortgage balance, and the remaining portion is distributed to you.
If You Have Beneficiaries
With a reverse mortgage loan, you still own your home and can choose to pass it down to your beneficiaries. They are given the option to keep the home and pay off the loan, or they can sell the home and use the earnings for repayment.
You Must Meet Certain Criteria
To qualify for a reverse mortgage, you must be at least 62 years old, own the home, and be up-to-date on federal and property taxes. The home must be your primary residence, and you must adhere to the property standards issued by the U.S. Department of Housing and Urban Development.
If you think you might qualify for a reverse mortgage loan, talk to your lender to see if it would be a good fit. They can give you a quote and recommendations on whether it makes sense to apply. To know more, please visit the website.