Financial decisions are often fraught with risk. Therefore, if you’re thinking about getting a reverse mortgage, make sure you know the terms and conditions before you sign your name on the dotted line. Here are some questions to help you figure out if it’s the right financial tool for you.
Are you aware of the extra costs?
A number of best reverse mortgages work out well for many borrowers. However, there are plenty of extra fees and upfront costs you’ll need to factor in before you can enjoy the benefits of a reverse mortgage. There’s an origination fee, servicing fees, appraisal fees, along with other charges, and all these could really pile up and lead to a ton of costs. Make sure you and your wallet are ready.
Does your family know?
Figuring out the payments can be stressful enough. If you think this is the right solution for you, tell your friends and family. They could offer you invaluable advice and tips about the best reverse mortgages as well as help you figure things out. It will be less stressful that way.
Who owns the house?
According to HGTV, make sure you and your spouse both own the house before you decide on a reverse mortgage. If you don’t, the surviving spouse might have to pay off the loan after the borrower passes away. Don’t put yourself in a financially risky position like that. See to these details to make sure you or your spouse are both protected from risks later on.
Are you at the right age?
To qualify for reverse mortgages, especially for seniors, you’ll need to be at least 62 years of age or older. But, if you’ve just retired and want to live out the rest of your life in relative comfort, do you really need to go for a reverse mortgage now? The average age for borrowers is usually 74, so you might want to wait a while before you take the plunge.