When is the right time to consider a reverse mortgage? If you need the money now and want to stay in your home then a reverse mortgage can be a good solution. The loan eliminates your existing mortgage (if you still have one). In this case it gives you access to a line of credit or cash.
The best time to seek a reverse mortgage is when housing prices are high. When your home is valued higher the more money you can take out of your home to be used for your needs. Today in many parts of the country housing prices are rising as inventory is falling.
It is also beneficial to do it at a time when interest rates are low. With low interest rates you also have more access to more money. Interest rates are at near or record low levels right now.
If you are older and want to stay in your home for the rest of your life is another great time to consider a reverse mortgage. A reverse mortgage can help make that happen. It gives you the opportunity to stay in the home you love while giving yourself more financial stability. This type of loan can help you live a better retirement.
Securing a reverse mortgage is also a great backup plan. The line of credit created is an excellent way to increase your flexibility with your finances. You also won’t accrue any interest on the line of credit unless you withdraw from it.
It is designed to ease your mind as you can use one of your biggest assets to help you live a more comfortable life as you age.
Ultimately, the best time to get a reverse mortgage depends on you. The loan process usually takes up to two months and not everyone will qualify. Talking with a lender and discussing the answers to these questions can help you make the best decision for you.