As you retire after long years of hard work, you would want your life to be as comfortable as possible. All that you have to do is to relax and enjoy your senior years. However, there are also instances when this is hard to achieve because of financial issues. So you want to look for a second source of income. This is when a Reverse Mortgage Company in Colorado can help you out.
What is a reverse mortgage? This is a type of loan usually offered to seniors against their residential property. The borrower will then receive the funds in lump sum, or whatever disbursement option they choose. There won’t be any monthly payments, but the homeowner must pay the usual insurance and taxes for the property. The borrower must also keep the house well-maintained as it should be.
If you are considering getting a reverse mortgage loan, here are the advantages that you should know of:
You Continue to Maintain Ownership
Most people think that the reverse mortgage company will take ownership of the home, but this is not true. You will still be the owner of the property provided that you abide by the terms and conditions stipulated in the contract. And like what we have said earlier, it is important that you pay the taxes, insurance, and other fees for your home.
There Are No Monthly Payments
Many people are attracted to avail of a reverse mortgage because of the fact that they don’t have to make monthly payments. Your loan will be paid off in case you decide to sell your property later on, or if you move to a new place. But then again, you have to fulfill your obligations when it comes to taxes and insurance.
There Are Various Disbursement Options
When it comes to the disbursement of funds, you have various options. You may opt to receive a lump sum or even a partial amount. You can also request monthly payments. This all depends on your needs. If you want, you can also do a combination.
It Is Insured
Another advantage of a reverse mortgage is that it is insured by the government. This means that when you decide to sell the residential place later on, and the proceeds are not enough to cover the full amount, the federal government will take care of the difference. You won’t have to worry about coming up with the short.