You hear about them everywhere from the television and radio to the discussion your friends are having over lunch: reverse mortgages. Your curiosity peaked, you wonder to yourself What is a Reverse Mortgage Virginia Beach ? Is it the right thing for me?”
What is a Reverse Mortgage Virginia Beach?
A reverse mortgage is really not as complicated as it seems. In simple terms, a reverse mortgage is a way for senior citizens to have access to the equity they have built up in their homes in the form of cash in hand. This can help you if you are running short on money during your retirement due to lack of earlier investment or low social security or disability payments.
You can receive this money in several ways, from a large lump sum of money, to monthly payments, a line of credit, or a combination of the three. The loan comes due when the loan owner dies, moves, or breaks their contract in some other way.
Is it right for you?
When you are considering a reverse mortgage, it’s important to educate yourself as much as possible. There are many things to consider before making this important life decision. Speaking with a lender experienced in Reverse Mortgage Virginia Beach can be invaluable.
You should consider the costs of the mortgage. Reverse mortgages typically have a high upfront cost. Entering into these types of loans can cost you up to eight thousand dollars. These costs are often waved aside as not important because of the low interest offered by reverse mortgages, but this cost may be prohibitive in some people’s situations.
The interest costs of a reverse mortgage can act very similar to a balloon mortgage. The costs can be low each month and then suddenly, the borrower is left with a huge payment that must be made in full or they violate the mortgage contract. Be sure to read and fully understand the interest and ballooning properties of any reverse mortgage you enter into before you sign the contract.
Is a reverse mortgage right for you? Only you and your family can make that decision, but by educating yourself about the pros and cons of these types of mortgages, you can do what is best for your own unique situation so that you can spend your retirement enjoying your time instead of fretting over your financial situation.