A reverse mortgage is a unique type of loan that allows homeowners of 62 years or older to withdraw a portion of their home’s equity and exchange it for cash. Many retired homeowners can benefit from this type of loan because it offers a way to supplement your retirement fund with a line of cash or credit. Although reverse mortgages have many benefits, they are not always advantageous for everyone, and may not make sense for every situation. Dan Turner, with Geneva Financial, can help you with a free consultation and determine if a reverse mortgage best suits your circumstances. We offer services in regions of Hawaii, Florida, California, Washington, Illinois, and Ohio.

What Is a Reverse Mortgage?

A reverse mortgage is a loan against your own home that does not have to be paid back until you no longer live in the residence. Essentially, a reverse mortgage allows a homeowner of 62 years of age or older to maintain home ownership while converting the home’s equity into cash. The major benefits of a reverse mortgage are that it allows access to cash, so senior citizens can have a supplemental retirement income without having to pay a mortgage payment. It can also extend the life of other retirement benefits, such as a 401(k) or social security, because you can access the reverse mortgage finances while delaying the withdrawal from these accounts and receive a higher amount from them later on.

Is a Reverse Mortgage Right For You?

If you have the desire to remain living in your existing home, and have financial needs that are not being met with your current retirement portfolio, a reverse mortgage may be right for you. On the other hand, due to the basic costs of setting up a reverse mortgage, (which typically include appraisal fees, closing costs, etc.), it is not advisable for people who plan to move in a couple of years to apply for this type of mortgage because they will not be able to utilize the full benefits. Dan Turner with Geneva Financial can help you understand the pros and cons of this loan during your free consultation and see if it is the right fit for your needs.

Loan Counseling and Requirements

If you decide that you want to pursue a reverse mortgage, you must receive loan counseling from a government approved agency. This counseling insures that you understand the loan benefits and drawbacks, as well as how the mortgage works, including payment options, tax implications, and closing costs. In addition to completing loan counseling, reverse loans also require you to be 62 years or older, you must own your own home, and you must live in the home as your primary residence. You will also be responsible for paying property tax, homeowners insurance, and home upkeep.

Free Reverse Loan Consultation

If you are trying to decide if a reverse loan is the best option for you, and are located in certain regions of Hawaii, Florida, California, Washington, Illinois, or Ohio, contact Dan Turner with Geneva Financial. The consultation is completely free, and we will help you weigh the pros and cons to see if a reverse mortgage is the right option for your home ownership needs.