If I Wait To Do My Reverse Mortgage, Will I Get More Money?
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The amount of money available to you with a reverse mortgage is factored by three variables. We will examine those in this article.
1. Your age. You have to be at least 62 years old when qualifying for a reverse mortgage, but will being older be a benefit on how much equity you can use? If interest rates and property values remain stable, you will benefit, but I don't think it makes sense to wait. Small increases in interest rates will have a negative impact, larger than the benefit of being a few years older.
The prior paragraph has an exception. If there is a spouse under 62 years old, but you qualify, should you wait until everyone is old enough? I can definitely say "it depends". If there is a hardship like potentially losing your home or needing a sum of money for medical expenses, it can make sense to just do the loan. Another reason to not wait is if the spouse is planning to move upon your passing so they can live near family. By taking a person off title and doing a reverse mortgage, you run the risk of leaving them without a home. They will need to refinance or sell the home since they weren't on the reverse mortgage. Please remember: It doesn't usually make sense to remove a person from title just to get more money, unless there is a hardship being avoided.
2. Interest Rates. We are seeing all time low interest rates with the fixed rate being in the low 5's. If the interest rate goes up even one percent, it could mean thousands of dollars difference in what you receive. It doesn't seem smart to gamble that rates will drop even more over the next several years.
3. The market value of your home. You may be better off using today's value of your home instead of waiting and guessing on what the value will be in a few years. We have had several clients wait a few years, only to have the property values drop dramatically and risk their eligibility. Guessing on real estate values is hard enough today, let alone three or four years from now.
Article Source: Articlelogy.com
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