Reverse vs Traditional Mortgages - What is the Difference?

Have you ever wondered how reverse mortgages compare to the traditional ones? With a traditional mortgage, you're steadily chipping away at the loan balance with your monthly payments. But when it comes to reverse mortgages, there's no need for those monthly principal and interest payments. That means your balance grows over time. To qualify you must be 62 - 55 in some instances, live in the home as a primary residence, maintain the home and pay your property taxes and homeowners insurance. Let's look at an example. Meet Bob. Bob takes out a reverse mortgage for 40% or less of the value of his home, and in the process, he enjoys an average home appreciation of 3 to 4%. This results in his home equity increasing, all without those monthly payments. In fact, the value of his home might be rising faster than his loan balance. This turns his home equity into a steady flow of cash for retirement. Bob can use these funds to spruce up his home, invest in his grandchild's education, pay for medical expenses, or simply elevate his retirement lifestyle. Homeowners are required to maintain the home and stay current on property taxes and homeowners insurance. If you're curious about how a reverse mortgage can enhance your retirement and leave a meaningful legacy for your loved ones, give us a call today. 

Laura Phillips

(866) 945-1655

laura@lauraphillips.com

Colorado Reverse Mortgage