Colorado residents often take pride in their ability to think outside the box, and that can extend throughout virtually every aspect of their life. One
thing that’s worth thinking about is taking out a reverse mortgage in Colorado.
In doing so you could give yourself a tremendous amount of financial benefits and enjoy your life more than ever.
Of course, understanding the basics behind a reverse mortgage in Denver CO is the first step towards figuring out if it’s right for you.
What Is It?A Colorado reverse mortgage is an FHA insured loan specifically designed for homeowner’s age 62 and above, that allows you to convert a portion
of the value of your home into tax free money, without having to sell the home, give up title or obligate yourself to a monthly mortgage payment.
A reverse mortgage is just a loan against your home. The lender has a lien against the title just like any other home loan. You are still charged interest, just like any other loan, however, you do not pay it on a monthly basis. You send in no monthly payments because the interest
is deferred to the end of the loan. Since the home is still in your name, it is still your responsibility as the homeowner to pay your property taxes
and home insurance as well as maintain the home.
Benefits Of The Reverse Mortgage Obvious benefits of a Colorado reverse mortgage stand out easily, and help highlight just why so many are now choosing
to use it.
- You get money that you can use however you like – for home repairs, paying off other debts, helping to extend the life of your retirement portfolio,
or anything else.
- You’re not responsible for additional monthly payments. Your heirs still inherit the home and if there is remaining equity, they can sell, or refinance
the home and they keep the equity. If the loan balance is higher than the value of the home when you permanently leave the home, your heirs can
give it to lender and walk away. The lender cannot come back on them or your estate for any loss.
- The financial freedom you gain from the loan provides a deep level of peace of mind and helps you enjoy your later years.
In short, a reverse mortgage in Denver CO is something that’s well worth thinking about for anyone looking for more financial strength as they grow older.
Is It Right For You?
So is the reverse mortgage right for you? It really depends. First of all, you have to qualify. In order to do so you need to be 62 years of age or older,
and the home must be your primary residence. But there are some other factors to consider as well. These include:
- Are you planning on staying in your home for the foreseeable future?
- Do you want to leave as much equity as possible for your heirs?
- Do you have significant debt or mortgage you need to pay off?
- Are you concerned about outliving your retirement savings?
- Are you looking for more financial stability to complement retirement options?