Are you and your spouse starting to move into your retirement years? If so, you already know that you are going to need a solid financial plan in the event your cash flow is challenged. If you have invested in your retirement, you might be all set. However, what if your house makes up most of your net worth?
Reason #1: This Is Your Last Home
To qualify for a reverse mortgage, you must be on title to your home and occupy it as your primary residence. If there is a mortgage balance it will have to be paid off through the refinance of a reverse mortgage. A reverse mortgage is a loan, secured by your home, it converts a portion of the equity, and repayment is deferred to a later date. It is a refinance. If staying in this house is your long-term plan, then a reverse mortgage might be a good fit.