
During times of economic difficulties, inflation can rise, and it can be challenging to get by on a fixed income. If you are a senior homeowner with sufficient equity, however, you can apply for a reverse mortgage. Here is how this special type of lending product can help.
- Make your finances more liquid. First of all, your home equity is not liquid. But if you borrow against it, you get access to funds that are. This increases your overall financial flexibility.
- Pad your daily finances to keep up with bills. If you are having a difficult time keeping up with your everyday bills, a reverse mortgage can help you do so and have more money left over.
- Pay off high interest debts. High interest debts eating up your finances can be extra challenging to deal with when times are lean. You may be able to pay off some of those debts with the funds you get from a reverse mortgage, freeing you from the interest.
- Have more money on hand for emergencies. If an emergency medical bill or automotive expense comes up, a reverse mortgage can make the difference between whether you can pay it or not. Being able to pay off these large emergency bills right away can minimize disruptions to your life and help you to avoid new high interest debts.
- Make cost-saving improvements to your home. With the funds from a reverse mortgage, you can make upgrades to your home that might help you save money over time. For example, if your electric bills are really high, you could use reverse mortgage funds to help you pay for energy-efficient doors and windows, or a better HVAC system. You could even install a solar panel system. Once you complete these upgrades, you should see a reduction in your energy costs. Eventually, the savings may offset your initial investment in the improvements, and then continue to keep money in your pocket.
- Put a down payment on a rental property. Another thing you can do with reverse mortgage funds is use them to make a down payment. You could consider buying a rental property or a second home. You would then be able to generate an additional stream of income.
- Stay in your home as long as you want. When you take out a reverse mortgage, you do not need to worry about having to move out of your home. So long as you stay current on all your home maintenance payments, you can stay in your home for the rest of your life. In addition, the loan does not come due until a maturity event such as the sale of the house or the death of the last borrower. If you used a different type of loan, on the other hand, you would not have those assurances.
Apply for a Reverse Mortgage in Ohio
If you are ready to apply for a reverse mortgage, please give us a call at (614) 505-0620 to schedule your consultation. We work with senior borrowers in Columbus and throughout OH.