A reverse mortgage loan is an excellent financing option that seniors can explore to cater to a broad range of needs. Unlike traditional mortgages, where the borrower makes payments to the lender over a long period, you receive payments from your lender in the form of one-time lump sum payments or adjustable-rate options.
The common eligibility criteria that borrowers must satisfy before receiving a reverse mortgage loan include being at least 62 years of age, living in your home as your principal residence, and having sufficient home equity. Below are specific things that you can use your reverse mortgage loan for.
Mortgage Repayment
If you’re currently paying off an existing mortgage, taking a reverse mortgage helps you defray that debt and eliminate monthly payments. In fact, clearing existing mortgage repayments is one of the most common things retirees use their reverse mortgages for. Besides paying property taxes, homeowners’ insurance, and other mandatory property charges, your reverse mortgage doesn’t require any monthly payments on the loan balance like a traditional one. However, this loan must be repaid when the borrower permanently moves, sells the house, or passes on. Therefore, finding a great reverse mortgage lender is essential when it comes to defraying any reverse mortgage loans if you’re the executor of estate assets owned by a family member who borrowed against the home’s value. Trusted lenders such as HCS Equity will come in handy when handling your reverse mortgage payoffs.
HCS Equity is an experienced lender that uses its capital to provide administrators, trustees, trust and estate attorneys, beneficiaries, guardians, conservators, and fiduciaries specialized financing. They work hand-in-hand with trustees, estate executors, and their attorneys to provide liquidity that solves pressing financial needs and fund buyouts of heirs and other beneficiaries. HCS Equity is also a California reverse mortgage lender, helping estate executors pay off reverse mortgage loans. These loans come due when the homeowner dies, meaning the family or estate must quickly defray the debt to keep the property. Their reverse mortgage payoff loans help you manage the estate’s assets without having to sell them to make ends meet. Also, you receive enough time to find permanent financing for the reverse mortgage repayment. What’s more, you enjoy competitive rates and terms, interest-only payments, quick funding, and avoid prepay penalties, among other benefits.
Remodel your home to accommodate your changing needs.
Aging comes with its unique set of issues that seniors must slowly adjust to. Some of these adjustments may require making key remodels around the home to make in-house navigation more convenient for you. Therefore, you can use your reverse mortgage loan proceeds to finance home renovations and remodels if you plan to age in place. Since the bathroom is one of the hardest places to use as you age, you can invest in bathroom remodels like adding grab bars or installing a walk-in shower to enjoy more comfort. Remodeling professionals such as LuxBath can help with this need.
LuxBath is a premier shower remodeling company catering to clients in the Pittsburgh area. They guarantee premium products and expert workmanship on all shower renovations carried out for clients. LuxBath offers stunning designs that elevate your bathroom’s look while also allowing you to fully customize every detail of your new shower, including color and accessories. They can also create various customized shower themes, from modern country chic to traditionalism, without sacrificing functionality and accessibility. Furthermore, you can personalize your shower design with shelves, high-end lighting fixtures, and other installation work to increase your bathroom’s comfort and aesthetics. LuxBath has several years’ experience in the shower remodeling industry, having completed thousands of patrons’ projects in the Pittsburgh area.
Buy a new home.
You can also use your reverse mortgage loan to purchase a new home. This is because a Home Equity Conversion Mortgage (HECM) for purchase loan allows you to buy another primary residence using HECM loan proceeds. With HECM for Purchase loans, you’d need to pay off the difference between your HECM proceeds and your new home’s price, plus any extra closing costs. Since smart homes are in vogue nowadays, it’s good to invest in great smart home technology to enjoy a more modernized living space. Leading home automation brands such as Apex Audio Video can help with these concerns.
Apex Audio Video is a home automation brand in Austin, Texas, providing helpful smart home solutions to homeowners. They offer the latest smart home systems that control your entire home, including its security and sound systems. Apex Audio are also Lutron dealers, so they can provide quality shading and lighting solutions to illuminate your home. Lutron allows you to install whole-home lighting systems without retrofitting or rewiring, thanks to their patented technology. You can use timers, automated shades, and sensors for lighting control over your home’s lighting systems. What’s more, you can use a simple app to centrally control all of your home’s lighting and enjoy complete command over your living space.
Reverse mortgage loans are great financing options worth considering for modern-day seniors. The above-listed points are great ways to put your reverse mortgage to good use.