Reverse Mortgages: How Do They Work?

As a senior homeowner in Florida, you can supplement your retirement income by applying for a reverse mortgage.

With reverse mortgages, however, there are some pitfalls you are going to want to steer around. Below, we go over some best practices that can help you to have the best experience with this lending product.

You Should Know About Reverse Mortgage

1. Take out the right type of reverse mortgage. Not all borrowers are aware that several types of reverse mortgages exist. You can apply for an HECM reverse mortgage, an HECM for purchase loan, a jumbo reverse mortgage, or a reverse mortgage refinance. It is important to make sure that you are picking the type of reverse mortgage that will offer you the most financial advantages given your situation. During your consultation, we can explain each of the different types of reverse mortgages, how they work, and what situations they are suitable for. That way, you can find which type of reverse mortgage will help you achieve your goals most effectively.
2. Plan ahead. Before choosing a reverse mortgage, think ahead to the future. Plan on how long you plan to reside in your home, and consider what you want to leave behind for your heirs. The clearer your vision for your future and your estate is, the easier it will be for you to make the most advantageous decision.
3. Pick a suitable disbursement option. There are several different disbursement options available if you are taking out a reverse mortgage. You can receive reverse mortgage funds as a lump sum, in instalment payments, or as a line of credit. It pays to take some extra time to think about which of these options will suit your needs. Indeed, there are some fairly specific considerations when it comes to disbursement options and benefits you receive such as Medicaid and Supplemental Security Income (SSI). We can go over all of this with you in-depth during your consultation.
4. Communicate with your heirs. Chances are good that your heirs have some unspoken expectations about what will happen after you pass. If you do not compare notes, you may get some of those expectations incorrect. For instance, you may assume that your heirs would not want your house after you are gone. But maybe they do. Alternately, you might assume your heirs would want the home, but they actually do not. The ideal way to handle things is simply to ask your heirs what they would do with the house once you are gone. This will help you figure out whether a reverse mortgage is the right fit for your needs or not.
5. Choose a mortgage company that specializes in reverse mortgages. Preferably, the company you work with is one that has extensive experience in reverse mortgages. That way, you can be sure that you will be receiving sound advice and that you are able to explore all of your options for increasing financial flexibility in your retirement years.

Apply for a Reverse Mortgage in Florida

If you are ready to get answers to your reverse mortgage questions or apply now, please call Premier Lending Corp at 954-840-8811 to schedule your consultation. We work with senior homeowners in Cooper City, Pembroke Pines, Hollywood, Fort Lauderdale, Miami, and throughout Florida.