How to Know if You're Eligible For a Reverse Mortgage?
Reaching the age of retirement is a kind of success of its own. Today's way of living is stressful and fast, so going into retirement is actually a brand new start for every person. This is a time to chase your dreams or finally start living the way you always wanted.
All this sounds fantastic. There's just one problem. Money. Times have certainly changed from the days when people getting retired today were going on their first day of work. The value of the money is also changed and life offers much more than before.
Getting retired means it's time to start living the way you always wanted but not everyone has a good pension check to do it. That's why people choose the great option called reverse mortgage. This bank loan is specially designed for seniors and their needs. Not everyone is eligible to get a reverse mortgage, however.
So, how to know if you are? The first and most important thing is to have a property on your name. A house, an apartment, a condo, everything that the banks can place a mortgage on it. When you sign the deal with the bank for a reverse mortgage loan, the bank gets an equity of the shares of your property. The best part is that you don't have to return anything to anyone until you're alive. Of course, there are options, like selling after a while and giving the bank what you own them, but you can completely forget about any connection with the bank if that's what you like. Get the money, spend it the way you like it, and enjoy your retirement.
The other important condition you must meet is age. This is different in different banks, but there is no bank that will give a reverse mortgage loan to a person younger than 60. As time passes and the government is raising the bar higher for the age of retirement, the banks also raise their bar for giving away loans to seniors.
The most common age for getting this kind of loan is 65 as the age needed to get a government pension is also 65. However, predictions are that by the age of 2023, the age required for retirement will be 67 so you can expect the banks to move in the same direction and again raise their age limit. Anyway, going from one bank to another is a smart move because not all banks have the same terms.
Also, different banks offer different interest rates and you need to find the one that is offering the best options for you. Maybe you're not planning to sell your house ever, but you can never know what life will give you in the future. Be prepared, selling after 10 years will make you regret your choice now because you might lose a lot of money just for choosing a wrong bank.