If you've heard a lot about reverse mortgages, but aren't quite sure if it's right for you, you're not alone. Thankfully, we've got help from HomeEquity Bank's Yvonne Ziomecki, who literally wrote the book on it, to break it all down for us. Her four Rs of reverse mortgages are below, but be sure to watch the video above for all of her expert tips!
It’s important to review your circumstances - that is your financials, assets and liabilities - and determine what you want your lifestyle to be. Do you like where you live? Does your house work for you? Can you age in place safely? You may want to do the review with your partner, your kids, your advisor or on your own using many resources that are available.
Based on what comes out of your review you may need to do more research – examine the cost of renovations/adaptations, the cost of in-home care vs. the cost of a retirement home, and of course, talk to experts and talk to friends about their choices.
If it’s the right option for you, consider using a reverse mortgage to improve your finances. Remember that when you take money out of your house, the interest accumulates only on the amount borrowed, while your entire house increases in value - and in today’s real estate market that’s a home run
Enjoy your retirement, and remember money is only good for two things – relationships and lifestyle. Enhance both and don’t wait till it’s too late!