How to Use a Reverse Mortgage to Your Benefit
This is a guest blog post from John McParland, vice president of Colonial Mortgage, a division of Ross Mortgage Corporation located in Livonia, MI.
What if instead of paying your monthly mortgage payment, your mortgage paid you? How would you spend that money? Would you use it to achieve some of your life-long dreams, take the trip of a lifetime, remodel your home or simply access additional retirement income? How great would it be to actually have those funds available to spend how you choose?!
Well believe it or not, all of this is actually possible through something called a reverse mortgage. A reverse mortgage is a HUD-insured loan program designed for seniors over the age of 62 who want to access the equity in their property—or in other words, turn the value of their property into cash.
By taking out a reverse mortgage, you’re essentially borrowing money from the value of your home. With the ability to access the funds in one lump sum, establish a revolving line of credit or receive monthly dividends, there are many ways you can use a reverse mortgage to achieve your personal and financial goals.
While most people use the available funds to enhance their financial security after retirement, offset monthly expenses or prepare for unexpected emergencies, such as medical costs, others use a reverse mortgage to live out a lifelong dream they’ve always had.
For some, this means remodeling their home, taking a dream vacation or even purchasing a second home. Individuals have even used this money to pay for their grandchildren’s college education.
This loan program may not be suitable for everyone. In fact, there have been instances when we’ve advised clients against taking out a reverse mortgage because it made more financial sense for them to refinance their existing mortgage.
As a reverse mortgage lender, it is our job to educate the public about how this unique loan program works and the benefits it provides so they can make well-informed decisions that ultimately help them achieve their financial goals.
In my next post, I’ll explain how a reverse mortgage works and answer some of the most common questions we receive from individuals considering a reverse mortgage.
If you have any questions about reverse mortgages, please leave a comment below or call me at 734.425.4520, and I would be happy to answer your questions.
John McParland is the Vice President of Colonial Mortgage, the Reverse Mortgage division of Ross Mortgage Corporation located in Livonia, MI. John has been a loan officer for 25 years and has been involved in helping thousands of seniors live a better life with the reverse mortgage program.