Federal Employees and Reverse Mortgages
To qualify for a reverse mortgage you must be at least 62 years old. If you are married, either you or your spouse must be age 62 or older. A reverse mortgage can provide a way to access part of your home equity to receive cash for what you want or need, while retaining ownership of your home and continuing to live in it. This sounds good, but a reverse mortgage might not be good for you. Care should be given to looking at all the factors involved in determining whether a reverse mortgage is right for you: your age, the value of your home, and your estate plan.
If you consider looking into a reverse mortgage, seek the advice of a qualified financial advisor who is knowledgeable and willing to go over the guidelines and stipulations in detail. You may also contact a certified U. S. Department of Housing and Urban Development (HUD) Reverse Mortgage Counselor. This is something you should discuss with your family so that all options can be weighed.
Reverse Mortgages and Regular/Forward Mortgages
It is important to distinguish the difference between a reverse mortgage and a regular mortgage sometimes called a forward mortgage. With a regular mortgage you take on debt to buy your home. As you make monthly payments and pay the loan off, you build up equity. A reverse mortgage allows you to get cash or increase your monthly income by taking on debt and reducing the equity in your home. With a reverse mortgage there are no monthly mortgage payments. You take on debt without rebuilding the equity in your home.
To consider a reverse mortgage is an individual decision and one that requires you being educated so that you can make an informed decision and one you are comfortable with.
P. S. Always Remember to Share What You Know.