Colorado residents have always been open minded, and that could mean taking a look at different types of mortgage options to improve their financial situation.
One option that is out there is a Colorado reverse mortgage,
and this could be a good fit for you depending on your situation. Understanding the basics of what a Denver CO reverse mortgage is and then looking
at whether or not it’s right for you is well worth doing, and could end up helping you enjoy greater financial freedom.
What Is A Reverse Mortgage?
A Colorado reverse mortgage isn’t that difficult to understand. Essentially, a reverse mortgage is a loan that allows you to access the home equity your
home has built up. But instead of paying monthly mortgages, you defer payment of the loan until you pass away or move out of the home. At that time,
either you or your heirs will sell the home and pay off the reverse mortgage. Whatever equity left in the home will go to you or your estate. There
are protections in place so in the unlikely event that your loan balance exceeds the value, you will never leave a debt beyond the value of the home
to your estate.
With a reverse mortgage, several benefits exist including:
- Ability to gain additional funds without having to worry about a monthly payment
- Money can be used however you wish
- In some cases, the loan balance can end up exceeding the value of the home
- The borrower’s estate is not required to repay any loan balance that exceeds the value
In short, you receive a home mortgage loan based on your equity and can enjoy the funds without worrying about repayment of the loan. You must live in
the home as your primary residence and since you still retain ownership of the home, you must continue to keep the property taxes and homeowner’s insurance
current as well as maintain the home.
Is A Reverse Mortgage Right For You?
For those who qualify for it, a Colorado reverse mortgage could be a perfect fit into their lives and a way to enjoy greater financial freedom in their
later years. Determining if it’s right for you begins with ensuring that you qualify. Generally speaking, you’ll need to meet a few basic requirements
- Be at least 62 years old
- The home must be your primary residence
- Existing mortgage balances must be low enough to be paid off with reverse mortgage funds – though this may not always be the case, and you aren’t required
to use the funds to do so.
Those are the primary requirements, though you’ll want to speak to a reverse mortgage specialist to determine whether or not there are additional requirements
in place for you.
So is it right for you?
There are a few people who a reverse mortgage is perfect for including:
- Those who want to use the money to pay off debt
- Those looking to enjoy their later years fully
- Those people looking for more flexible options with their retirement planning
Talk to a reverse mortgage specialist for yourself, and
you’ll be able to make the decision as to whether or not it’s right for you.