Some get to retire into stress-free bliss, traveling the world without a care. For those of us in the real world, we realize that stress doesn’t stop once you no longer clock in for your nine-to-five. Even the best laid retirement plans can change in an instant: an economic recession, major illness, or other critical life event. If you’ve started looking for an added, steady stream of income—that doesn’t require going back to work—a reverse mortgage loan may be your solution.
At Kloze, we’re all about solutions. We are a full-service mortgage lender dedicated to meeting the needs of you and your family, from the mortgage rates on your first home to the reverse mortgage loan from your forever home. We care about your financial stability and want you to understand fully how to best structure your mortgage to fit your life.
What Is a Reverse Mortgage Loan?
A reverse mortgage loan allows all homeowners age sixty-two or older to borrow money against the equity of their home. The difference between a reverse mortgage loan and a home equity loan is that with a reverse mortgage loan, you owe nothing until you sell your home or pass away. At that time, the money is repaid through the sale of your home, not out of pocket. (Your heirs may also choose to pay back the money if they want to keep the home.) Payments from your reverse mortgage loan continue to you or your spouse, whoever lives longer.
What Are the Benefits of a Reverse Mortgage Loan?
One of the great benefits of a reverse mortgage loan is that your credit is irrelevant. Lenders are able to offer reverse mortgage loans because your home serves as collateral. Furthermore, a reverse mortgage loan removes the burden of budgeting; you will never pay back the money you receive through your retirement income.
The value of your reverse mortgage loan is adjusted to ensure that it never exceeds the value of your home. Another great benefit of a reverse mortgage loan is that the money is tax free and cannot affect your Medicare or Social Security benefits. These added benefits are more than just money—they’re peace of mind. Reverse mortgage loans are not the best choice for those looking to move out of their home within a few years, for obvious reasons, but it has been shown to be a great fit for thousands of households.
Does a reverse mortgage loan sound like the solution you’ve been searching for? Great. Give us as call, and we’ll walk you through the next step in the process. Still not sure but would like to learn more? That’s great, too. It’s why we maintain a staff of friendly, knowledgeable, and dedicated customer service representatives and mortgage professionals. Find out today why Kloze has the solutions you’ve been searching for.