(Good Things Utah) Planning and preparing for the next stages of life are important at any age. For older individuals, it’s even more important to plan, as it will help take care of yourself and your family. When it comes to our homes, many older generations realize that it’s helpful to consider having a Reverse Mortgage.
What is a Reverse Mortgage?
“If we try not to complicate it and look at it as a regular mortgage because it is a regular mortgage. But the difference is you don’t have to make payments,” says Justin Bundy with Gideon Reverse Mortgage. “…there is some barrier to entry.”
Some of the requirements for a Reverse Mortgage include:
- Must be age 62 or older.
- Own your property and have approximately 50% equity in your home.
- Not be delinquent on any federal debt.
- Live in the home as your principal residence.
Attaining equity in your home is critical for making this process work. Justin added: “…with that equity, they keep that in the mortgage and that’s what pays off the balance of a loan when the person that has a Reverse Mortgage passes away. So there are no payments for life, for both you and your spouse — forever.”
One common misconception about Reverse Mortgages is that they’re only for financially strapped individuals. According to Justin, this couldn’t be further from the truth. “I went through my last 45 loans, and of those loans, 3 people were maybe ‘desperate.'” For the majority of Reverse Mortgages, the purpose is to help older individuals secure their retirement or help those looking to purchase a home.
The best way to start is by speaking with a Reverse Mortgage specialist, as they can navigate you through the process and walk you through the steps as they go. Having a specialist can also benefit those looking to get out of a Reverse Mortgage — commonly the family of someone who has passed.
For more information about Gideon Reverse Mortgages and to find a specialist, go to justinreverse.com or visit them at 1060 South Main Street in St. George, Utah.
**This segment contains sponsored content