5 Reverse Mortgage Questions to Ask Before Taking a Reverse Mortgage
At Citizens Lending Group, we want everyone to ask themselves important reverse mortgage questions before they accept the loan. We believe that education and transparency are the best ways to serve our clients and help them achieve their financial goals.
Therefore, we have prepared this section to help you understand the most important facets of the reverse mortgage process. If you answer all these questions for yourself and are ready to start the process or learn more about reverse mortgage requirements, contact us today.
Reverse Mortgage Questions Everyone Should Answer
The following are the important reverse mortgage questions you should answer for yourself before taking out a reverse mortgage.
1) Do You Actually Need a Reverse Mortgage?
What will you do with the money from your reverse mortgage? Typically, investing money from a reverse mortgage does not overcome the costs associated with it. Additionally, a reverse mortgage can be a very expensive way to pay for unnecessary purchases. Ask yourself it the money you need from a reverse mortgage is for something that you truly cannot live without.
2) Can You Afford a Reverse Mortgage?
Like all loans, the amount you owe on a reverse mortgage goes up with interest rates. However, because you make no payments on your loan until the loan is due, many people do not think about the costs of a reverse mortgage. Additional costs of reverse mortgages include the monthly and yearly money you must pay in taxes, HOA fees, homeowners insurance, and maintenance. This can be one of the easiest reverse mortgage questions to answer because your lender is required to make sure your existing income is enough to keep your home maintained and the taxes paid.
3) Can You Afford to Start Spending Home Equity Now?
Once you have closed on your reverse mortgage you will begin spending the equity you have spent years building. One of the reverse mortgage questions to ask yourself is whether or not there will be enough money there to get you through your retirement years. Depending on your retirement savings and expenses, you want to wait until later in life to begin spending your equity.
4) Do You Have More Inexpensive Options?
Some reverse mortgages carry high fees and interest rates. One of the reverse mortgage questions to ask yourself is if you are getting a very good rate and good deal on your reverse mortgage. If you can find lower interest rates and fees, you should always take that option.
5) Do You Fully Understand Reverse Mortgages?
These reverse mortgage questions are here to measure how much you really know about a reverse mortgage. If you do not know all about reverse mortgages it is best to do more research before you proceed.
Ask Us Your Reverse Mortgage Questions
At Citizens Lending Group, we want seniors in California, Pennsylvania, and Florida to make the best financial decisions possible. Contact us today to ask us any questions you have about reverse mortgage requirements or if a reverse mortgage is right for you. The reverse mortgage questions above are the best place to start your education.