Reverse mortgages are a type of home equity loan for homeowners age 62 and older. Recent changes as of October 2013, mean that you need to take a second look see…is a reverse mortgage right for you and your needs? Or would is there a better option for you?
Talk to a financial advisor, your accountant, or your lender to see how the changes in reverse mortgages might change your plans for your finances and your home.
If you’re considering a reverse mortgage and you’ve been crunching numbers, it’s time to take a second look at your options before finalizing your plans.
Reverse mortgages allow those over the age of 62 to tap the equity in their houses and turn it into cash for living expenses, medical care, home improvement projects, and so forth.
At the beginning of October, the U.S. Department of Housing and Urban Development tightened its restrictions on reverse mortgages.
What could mean to you? It’s possible that getting a reverse mortgage will be more difficult and you might not be able to get as much cash out of your house as you’d anticipated.
Each person’s financial situation is different, so there’s no hard rule to offer for that will help you with your calculations.
So before cementing your financial plans, get in touch with your financial advisor to be certain that you’re making decisions that are based on up-to-date lending guidelines.