Reasons To Consider A Reverse Mortgage

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Homestead Funding discusses reasons why homeowners may consider obtaining a reverse mortgage

A reverse mortgage provides homeowners with the opportunity to use the equity in their home without having to move out of the home. Though there are many reasons that a homeowner may want or need to access the equity in their home, here is a look at some of the most common reasons and how a reverse mortgage can help.

Staying Home

One of the most common reasons that a homeowner may want to complete a reverse mortgage is to stay in the home. Many seniors may be facing tough financial decisions to pay for the daily costs of living, especially in the event of an unplanned medical expense. A reverse mortgage can allow a homeowner to use the equity in the home to pay these costs without having to move out of the home.

Enjoyment

A homeowner does not have to have a practical reason to use a reverse mortgage. A homeowner can choose a reverse mortgage to take a vacation, to buy a second home or do anything else he or she desires. After a lifetime of working and building equity in a home, there is no reason that ...
... a homeowner cannot choose to use that equity to enjoy retirement to its fullest.

Flexibility

A reverse mortgage payout can be structured in different ways to meet the homeowner’s specific financial needs. For example, after completing the reverse mortgage process a homeowner can choose to receive a lump sum payment of the money, to receive payments over time or a combination of both.

Lower Interest Rates

An elderly homeowner with a large amount of high interest debt can use a reverse mortgage as a younger person might use a home equity loan (but without the monthly payments!). By taking out a reverse mortgage, the homeowner can use the money from the loan to pay off the high interest debt. This will help the homeowner free up money by removing the payment and will help the homeowner save money by removing the high interest debt.

Gift Giving

A homeowner may choose to use a reverse mortgage as a way to raise funds to give to another person or organization. For example, a homeowner can use the money to pay for a grandchild’s college education, to donate to a religious or other charitable cause or to simply help out a family member or friend in financial distress.

Value Appreciation

With a reverse mortgage, a homeowner does not have to forego possible financial gains due to appreciation of real estate value. If a person sells the home outright, the homeowner will receive only the market value of the home at that time. With a reverse mortgage, the homeowner will receive money from the home and will still be able to capture any future real estate price appreciation.

Need more information about reverse mortgages? Speak with a Licensed Loan Originator at Homestead Funding today. The mortgage specialists at Homestead Funding can assist borrowers looking for all types of residential financing. Whether you are a first time home buyer or refinancing your current home, Homestead Funding can assist you. For a complete list of Homestead Funding’s products, visit the Mortgage Products page here. Homestead Funding’s specialists are located throughout New York State, Connecticut, Massachusetts, Pennsylvania, Virginia and Maryland. To speak with a mortgage specialist near you, visit http://www.homesteadfunding.com/locations/search.cfm.

Homestead Funding Corp. is a multi-state licensed mortgage banker with branches located in New York State, Connecticut, Massachusetts, Pennsylvania, Virginia and Maryland. In operation since 1995, our corporate headquarters is located in Albany, New York where we have perennially been the area's largest independent mortgage lender. We have tens of thousands of satisfied customers, originated billions of dollars in residential mortgage loans and maintained a reputation of exceptional service, honesty, integrity and financial reliability. For more information, please visit online at www.homesteadfunding.com.

Contact Homestead funding for expert advice onReverse mortgages New York. We have branches in Massachusetts, Connecticut and Virginia.