Is a reverse mortgage a better option than a home equity loan?
For many retirees, the income and credit requirements on a home equity loan may prove an obstacle to accessing that particular financial tool. A reverse mortgage doesn’t have these requirements. 6. Do you intend to pass your home on to your children or other loved ones? With a reverse mortgage loan, the outstanding balance needs to be repaid when the title changes hands. If one’s heirs wish to keep the home, they may be able to refinance the loan at that time, but it may be necessary to sell the property to repay the loan. Take the time to openly discuss this question with loved ones as an important first step when considering a reverse mortgage. Many families find that their children would prefer to see their parents experience a more comfortable retirement, rather than making the priority obtaining the family home, ‘free and clear.’ For more information, visit www.metlifebank.com. RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.
