If you’re a senior citizen over the age of 62, you probably know a little about living on a fixed income. Some are fortunately enough to retire with a number of different investments that will give them a comfortable retirement from a financial perspective. However, if you’re like many, you financial station in life made it difficult to retire with a huge reserve of cash. Fortunately, there are ways to get extra cash without putting a strain on your already tight budget. One popular method is by getting a reverse mortgage.
The question that is most often asked is What is a Reverse Mortgage in Richmond? A reverse mortgage is when a homeowner that is 62 years old or older takes the equity in their home and uses that to receive monthly payments. The reason why it is called a reverse mortgage is because that’s what it is. Instead of a mortgage company receiving payments from you, a reverse mortgage company makes payments to you. The big difference is that they don’t and never will own your home once they have made the last payments to you with a reverse mortgage. This is a debt much like a loan and not an agreement to change ownership of the home.
Now that the question of What is a Reverse Mortgage in Richmond has been answered, the next step is to understand most reverse mortgages terms. As stated earlier, you will not lose ownership of your home by getting a reverse mortgage. In addition, you won’t have to pay any of the money you received back as long as you live in the home. However, if you get behind in your taxes or insurance payments, you could end up having to repay your reverse mortgage, even if you’re still living in the home.
If you need extra money for monthly expenses, you want to pay off an existing mortgage early or you have any other emergency that will require a substantial amount of money, a reverse mortgage might be an option. If you are interested in one of these mortgages, you can speak with a reverse mortgage professional, ask some questions and from there, you can determine if a reverse mortgage is right for you.
