Reverse Mortgage: Is It Worth It?
A reverse mortgage can be a great way to get the financial security you need in retirement, but it's not right for everyone. Here are some things to consider before taking out a reverse mortgage:
Your age and health. A reverse mortgage is only available to people who are at least 62 years old. If you're younger, you'll need to find another source of funding for retirement. And, since a reverse mortgage is a loan, you'll need to be in good health to qualify.
Your home's value. The amount of money you can borrow with a reverse mortgage depends on the value of your home. If your home isn't worth much, you may not be able to borrow as much as you need with a reverse mortgage.
Your other retirement income. If you have other sources of retirement income, such as a pension or Social Security, you may not need to borrow as much with a reverse mortgage. On the other hand, if you don't have much other income, a reverse mortgage could be a good way to supplement your income in retirement.
Your plans for your heirs. A reverse mortgage will require you to repay the loan when you die or sell your home. That means your heirs may not inherit your home free and clear. If you want your heirs to inherit your home, you may want to consider another source of retirement income.
A reverse mortgage can be a great way to get the financial security you need in retirement, but it's not right for everyone. Be sure to consider all of your options before deciding if a reverse mortgage is right for you.