Reverse mortgages have been widely criticized because they are not the ideal financial move for everyone. But this doesn’t mean that a reverse mortgage in Denver is a bad deal in every situation. Even though it can be an expensive option, it might still be the best choice, depending on your circumstances.
Do you need cash and your biggest asset is your home equity? If you are in this situation and don’t have any other way to raise funds for your daily living expenses, then a reverse mortgage is worth looking into.
However, this decision should never be taken lightly. After all, you worked hard for so many years to accumulate your equity—and you will spend a lot of that on interest and loan fees once you sign up for a reverse mortgage. So how do you decide? Here’s how to know if a reverse mortgage in Denver can be the solution to your financial woes:
- To even qualify, you must own your house outright or at least be close to paying it off.
- You AND your spouse should ideally be at least 62 years old. Any younger and a reverse mortgage isn’t ideal.
- A reverse mortgage only makes sense if you have enough equity in your home so that the loan will provide you with a good line of credit or lump sum monthly payment after paying off the existing balance on your mortgage.
- You should be planning on staying in your home for many more years. It doesn’t make financial sense to pay all the upfront costs associated with a reverse mortgage in Denver if you move in just a few years. Also, you will have to repay the mortgage if you decide to move.
- You also need to be updated on your property taxes, home maintenance, and homeowner’s insurance if you have a reverse mortgage. The lender can declare the loan due and payable if you fall behind.
If you think that a reverse mortgage in Denver is the right solution for you, then talk to a mortgage broker who can help you get competitive quotes from different lenders. Mortgage brokers can also provide some counseling to help you figure out if this type of loan is a good long-term financial strategy for your situation.