Ask Yourself This...
Florida Reverse Mortgage Questions to ask Your this
More money every month -- that sounds like a good deal. For many people, a Florida reverse mortgage is a sound financial tool. They're 62 years old or older and they own their home outright. Still, a reverse mortgage, while a fine thing for some people, may not be for you. Here are three things to think about before you go searching for lenders.
1. Do you need the extra income?
A Florida reverse mortgage is a tax-free income stream but it does cost some money. Any loan has interest on the principal. In a reverse mortgage, as time goes by, the principal grows and the amount of interest accruing grows as well.
A reverse mortgage doesn't get smaller as you repay it. You should be getting a Florida reverse mortgage to pay for things you would like to enjoy or projects you would like to undertake. You should not be getting a Florida reverse mortgage to increase your liquid assets. Increasing your liquid assets may be a bad idea depending on your situation. Plan on spending the money.
2. How long will I be around?
When you take the tenure monthly payment option, which is the option many people take, the longer you live, the better a deal you're going to get. If you're in relatively good health and it seems that you're going to be around for a long, long time, a Florida reverse mortgage may be a terrific deal.
3.Do I want to leave an inheritance?
A Florida reverse mortgage uses your property as collateral. Most Americans list their home as their single largest asset and this asset is usually passed on to their heirs. The formula is simple for inheritors when dealing with a Florida reverse mortgage. After the last homeowner has passed away the debt becomes due and the heirs must pay the note. They can pay the note and remove the lien on the house or they can sell the house and pay the note. A reverse mortgage is a non-recourse note, so if the heirs sell the house at market value and it doesn't cover the debt, the debt is settled anyway, since the lender has no recourse to other assets. If the heirs sell the house and the value exceeds that of the debt, they keep the balance.
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