A reverse mortgage lets a homeowner borrow a portion of their home equity without worrying about repaying it. With the exploding population of elderly people in the US, the demand of reverse mortgage is also escalating. Unfortunately, many people in the US are not financially literate. This makes it difficult for them to take a prudent financial decision regarding the purchase of reverse mortgage. In such a situation, a reverse mortgage expert in Mahwah, NJ can help them out and explain how a reverse mortgage can assist them after their retirement.
An Additional Stream of Cash
A reverse mortgage expert can help you in purchasing a reverse mortgage that will provide you with fixed monthly payments for the rest of your life. Don’t worry about the repayment of this amount; the lender will recover this amount after you expire.
Cancel Out Your Mortgage
If you are 62 years old and have recently retired but your house is still on the mortgage, then you can buy a reverse mortgage as it will cancel out your remaining mortgage payments. This will relieve you from the burden of mortgage payments, and you will receive fixed monthly payments every month.
Become the Owner of the House
After your outstanding mortgage is paid-off by buying a reverse mortgage, the borrower will become the owner of the house. Does this sound counterintuitive to you? Let us explain. In a reverse mortgage, the borrower of the money is the legal owner of the house and can live in it until they pass away. The lender, on the other hand, has the house as collateral. This means that after the owner of the house dies, the lender will sell that house in order to recover the money that they had lent to the borrower.
Longbridge Financial is a reputed reverse mortgage expert in Mahwah, NJ that is approved by the Federal Housing Administration (FHA). It operates in 46 states and is committed to providing financial peace of mind to the elder generation.