Many seniors in the Newport News area are enjoying retirement life. However, their finances may be a bit tight. The financial crisis that occurred a couple of years ago did diminish the size of many people’s retirement accounts. Expenses have gone up as well. This is especially true with respect to health expenses. At the same time, many seniors have been making payments on their mortgages. Once each mortgage payment has been made, that money is trapped within the walls of the home. It can be difficult to extract cash from home equity, especially with limited income in retirement. Fortunately, there is another option available from reverse mortgage lenders in Newport News.
A reverse mortgage may make sense for a lot of seniors, especially those who have paid off their homes or have nearly paid off their homes. With this type of loan, Reverse Mortgage Lenders in Newport News allow seniors to cash out the equity in their homes without the normal requirement of making monthly loan payments to repay the borrowing. Seniors do not have to make monthly mortgage payments. While the loan is outstanding, seniors can still live in their homes without worrying about repayment. When all of the owners have passed away, the home will be sold in order to repay the original loan plus interest. If there is any equity available after settling the loan, that money can go to heirs.
Although there are no monthly mortgage payments, Reverse Mortgage Lenders in Newport News want to make sure that the subject property is protected. The borrowers will need to make sure that there is sufficient homeowners insurance. Furthermore, it is necessary to stay current on property taxes. Both of these expenses are common for people who do not have a reverse mortgage, so it isn’t really an added cost for most people.
There are a number of options to consider when seniors are thinking about getting a reverse mortgage. For example, should the money be taken in a lump sum or as a monthly payment.
