Retirement provides opportunities to discover new adventures. However, you could encounter some financial challenges if your lifestyle requires more money to maintain than you receive during your post-working years. As a trusted financial company in Texas, 1st USA Reverse Mortgage offers helpful loan products to eligible borrowers.
Why Should You Get a Reverse Mortgage?
Seniors typically receive dozens of promotions each month for new credit cards, personal loans and for traditional mortgage products. While teaser interest rates and low annual fees may be very tempting to ignore, you can avoid the accumulation of debt that requires ongoing monthly payments. Reverse mortgage loans offer a safer method for retirees to supplement their earnings.
With most types of loans, a borrower is required to make monthly payments until the principal balance, interest and any applicable fees are paid in full. Getting a reverse mortgage is ideal for borrowers who need additional cash without having an obligation to repay a portion of the debt each month. If you are searching for a loan to remodel your home or to obtain a lump sum of money, you should speak with one of our licensed experts about the benefits of obtaining a reverse mortgage.
Using Home Equity to Supplement Your Retirement
After leaving the workforce, a large percentage of retirees will notice a reduction in their monthly income. Budgeting will often suggest that a senior or a retiree should reduce some of their nonessential activities, such as frequent golfing, traveling and dining at high-end restaurants.
One of the unique features of a reverse mortgage is the ability to receive scheduled monthly disbursements. However, you might prefer to get all of the loan proceeds upfront. You get to decide which method of distribution is most desirable for your financial situation. Using some of your home equity to supplement your retirement is a favorable way for you to obtain a lump-sum disbursement, to receive monthly disbursements or to set up a credit line to access your funds.
Considerations
After many years of making monthly mortgage payments, you might have a considerable amount of home equity. Using a portion of the equity in your home could enable you to pay off your high-interest rate debts, to travel more frequently or to establish some additional financial reserves. Our licensed mortgage experts are knowledgeable, honest, courteous. Call 1st USA Reverse Mortgage today at (512) 288-4700 for more details about supplementing your retirement with a reverse mortgage loan.
