If you're like most retirees, you own a home but don't have much else for your golden years. But you won't have a place to live if you sell your house! So, here's your problem: you need money to live, but the only valuable thing you own is the place you live.
You can solve this retirement problem with a reverse mortgage. With this choice, your house is sold piece by piece instead of all at once. You also get to stay in your house. You can use a mortgage calculator to figure out how much home equity loans or refinancing will cost you each month. Also, you can use this mortgage calculator to figure out how much your loan will cost you in total.
First, give an agent a call. They will be happy to tell you how much your house would sell for and what you can do to make it worth more. Depending on how smart you are and how much time you can put into it, this could pay off very well. The amount you get from a reverse mortgage depends on how much your home is worth. So, if there is a simple way to make your home worth more, you should do it before you apply for a reverse mortgage.
You can find out if you should get a home equity loan before you get a reverse mortgage by using a mortgage calculator. The mortgage calculator will tell you how much a home equity loan would cost you in total for the short time between the repairs and the reverse mortgage. But be careful. Don't spend more on remodelling than what it will add to the value of your home. Also, don't change anything you like about your house. You still get to live in it, after all.
Now that you know how much your house would sell for, it's time to look into a reverse mortgage loan. You can use a special mortgage calculator to find out how much each loan would give you. This mortgage calculator gives you results based on your age, the value of your house, where it is located, and who your lender is. There are many mortgage calculators out there, so it's best to check with AARP to make sure it's a good one. Their website has a simple mortgage calculator that is a good place to start.
Why is it called a loan, though? Because when you're done with the house, the lender wants money, not the house. Obviously, if the house sells for more than you got for it, your heirs might get some of the extra money. When you get the loan, this is something you should work out. Again, you can use a mortgage calculator to figure this out. If you still owe money on your property, you will have to pay it off before you can get your money.
After you've done your own research, you should talk to an expert. You should be able to get a list of good lenders and mortgage brokers from the real estate agent you talked to before. They will show you how to do it. Read every piece of paper. If you don't understand something, ask about it. Soon, you will be able to get a check instead of having to pay your mortgage every month.
