The biggest advantage of a reverse mortgage is that making monthly payments is optional, as long as you keep your property taxes, insurance, and upkeep current. The loan can even pay you each month. The loan balance only comes due when the last borrower dies or leaves the home.
Taking out a reverse mortgage early – homeowners become eligible once they turn 62 – can help boost retirement savings, and maximize the benefits via a guaranteed-to-grow line of credit on any unused funds.
But what if you take out a reverse mortgage, only to see interest rates drop a few years down the road? Are you stuck with the higher rate?
Not http://www.rksloans.com/payday-loans-la necessarily. You can refinance a reverse mortgage, just as you can a traditional mortgage. A reverse mortgage refinance can be the right move if interest rates dropped, your home has appreciated significantly in value, or you want to add your spouse to the loan.
But there are pros and cons to refinancing a reverse mortgage. Learn what’s involved, including the related fees and steps required.