A Reverse Mortgage: Is It Right For You?

Kachi Realty

A Reverse Mortgage: Is It Right For You?

A Reverse Mortgage: Is It Right For You?


A reverse mortgage is a financial option available to seniors which allows them to free up some of the accumulated equity in their home. This may be an appealing option for obtaining some extra income in your retirement to use for a variety of reasons; however, there are some important considerations to weigh before borrowing against your greatest investment.


Here are some facts about reverse mortgages, and some tips for making the right financial choice.


What Is A Reverse Mortgage?


Sometimes called a lifetime mortgage, a reverse mortgage allows you to borrow against the equity in your home, which can be paid out either in one lump sum or in several payments over time. This amount does not have to be paid back to the lender during your lifetime provided you stay as a resident in your home and it remains your property. That percentage of the value of your home which you have taken out now becomes the property of the lender, and will be returned to them after the sale of the home. Your heirs still inherit the property upon your passing, and they have up to one year from that time to either refinance the property, or sell it and keep the remainder of the proceeds for themselves.


Do I Qualify For A Reverse Mortgage?


Depending on where you live, the qualifications for a reverse mortgage may differ. In general you must be 62 years or older, have no outstanding mortgages on the property upon which you are borrowing, and you must have sought the advice of a qualified financial advisor in order to prove that you fully understand the process. You can use the monies from a reverse mortgage for whatever you want, as there are no restrictions.


How Much Can I Get From A Reverse Mortgage?


Again, depending on where you live, the amount of equity you can receive from your home with a reverse mortgage will differ. In the U.S. there is a maximum limit of $625,500, no matter what the value of your home, but for most homeowners the actual amount will be considerably less. The actual amount you will get depends on a variety of factors such as the value of your property, the interest rates at that time, your age, and whether you want a lump sum payment.


Reverse mortgages can be a great addition to your retirement income, but being sure you know all the facts before going ahead will ensure peace of mind for both you and your family in the long term.


Useful Information from Kachi Realty LLC

Tips On Saving Energy & Money At Home

June 1, 2022
Cut your energy costs with easy home tips. Learn how smart lighting, efficient appliances, and simple thermostat tricks can help you save energy and money year-round.

WAYS TO GO GREEN IN THE KITCHEN

By sites • September 17, 2021
WAYS TO GO GREEN IN THE KITCHEN Start a garden. Whether you opt for a full-out vegetable garden or a small window of fresh herbs, the taste of freshness will be unmistakable! Shop locally! Visit local farmers markets or choose locally produced produce whenever possible. Bring your own bags when you visit the grocery store. Switch to energy-efficient light bulbs. Save time and energy by cooking a double portion and setting half aside in the freezer for a quick meal at a later date. Get energized and leave the appliances alone. Whenever possible, mix and beat ingredients by hand, cook multiple items at the same time, and avoid washing dishes unnecessarily. Use energy-efficient appliances such as the slow cooker or toaster oven, which can use up to 30% less energy. Be aware of energy wasters such as excessive pre-heating or simmering. Ditch the wraps (such as saran wrap or foil) and make the switch to reusable containers for lunches and leftovers. Put a lid on it! Did you know that cooking with lids could save up to three times the energy? Keep all that steam inside the pot for a more energy-efficient (and faster!) meal. Go fresh—say goodbye to excessively packaged foods, which are often produced using processes that are harmful to the environment. Cooking meals from scratch using fresh ingredients is not only healthier, it’s often less expensive and better for the environment. Decide what you are looking for before you open the fridge, and never keep the door open longer than absolutely necessary.

Water Features For Your Yard

By sites • June 2, 2021
Water Features For Your Yard A water feature can make a major change in your yard, and there are plenty of different ways to go about adding one. From a simple and small fountain to a koi pond or waterfall, you can use water to create a peaceful sense of a real escape from life in your yard. Small Water Features For small yards or for those looking to add something simple, a basic fountain is easy to add. They come in a variety of types, shapes, and sizes and can fit into any landscaping. Your fountain can be a centerpiece for the yard or can be placed near the patio. You can even get a small tabletop fountain for the patio table. Most fountains are easy enough to install by yourself. They use a pump system that circulates the water and keeps the fountain running. Follow all of the instructions for set-up, use, and care that come with the fountain and you can enjoy the sound of trickling water for many years to come. Adding A Pond A pond is a really eye-catching and special addition to any yard. You will need some space for it, but even smaller yards can manage one. Koi ponds are a very popular choice, as the fish are lovely and create an ambience in the yard. They fit in well with any sort of Japanese or other Asian landscape design, but really extend into other styles as well. Make sure your pond has a system for keeping the water circulating and clean; standing water can become a breeding ground for mosquitoes, and it can get quite dirty over time. It’s best to have a professional install the water system for your pond. Waterfalls You may not be able to have Niagara Falls in your yard to enjoy, but you can get a waterfall added as a feature of your yard. These can be falls that descend over a rock wall, a small stream that runs over consecutive drops in a sloped yard, or something in a corner where water falls down into a small pond. A waterfall adds the sound of moving water to the air all the time. Be sure you have proper drainage for the water system. Water features are a beautiful addition to any yard, and your imagination is really the only limit. Many professionals can help you to design the water feature that is right for your yard and your needs.
More Posts