What is a reverse mortgage?

What is a reverse mortgage?

Reverse mortgages are a relatively misunderstood mortgage loan. Think of it as a seniors retirement loan, and much more.

It’s a seniors loan that lets you access the equity that you have built up in your home without having to sell the property.

A reverse mortgage gives you the choice on how you will receive the money:

1. As a lump sum payment
2. A regular series of payments
3. A combination of both.

It's a valuable source of retirement income to help you live more comfortably. And you don't have to sell the house. With a reverse mortgage, you do not make any repayments until your home is sold.

How is a Reverse Mortgage Calculated?

Use this smart money reverse mortgage calculator:

Reverse mortgage calculator - Moneysmart.gov.au

1. Enter the period of time you expect to need the loan (this should be the number of years before you intend to sell the property).

2. Enter the current value of your home, followed by the payments you’d like to receive from the reverse mortgage.

3. Select how you expect the value of your home to grow.

The reverse mortgage calculator will show:

• How the balance of a reverse mortgage can compound over time, and?
• The impact of a reverse mortgage on your home equity as the years progress.

What are the interest rates for a Reverse mortgage?

Interest rates do tend to be higher than for regular home loans. Make sure you speak to us first to help guide you through repayments and the costs involved.

Finance Broker - Matthew Stack - 0423 237 242?

Reverse mortgage rates for seniors?

A great option for?pensioners and retirees that hold most of their wealth in real estate assets or other physical assets. After 60 years old, reverse mortgages allow seniors to convert their home equity into cash that they can use as they wish - to fund a more comfortable retirement or move into age care.

Unlike a traditional loan, senior borrowers do not have to have an income, and the loan is only paid back when the borrower:

1. Sells the home,
2. Moves out or,
3. Passes away.??

So how does a reverse mortgage work???

These senior's loans allow you to take a loan as a lump sum, an income stream, or a line of credit while you live in the home. You do not make repayments during this time - at all. Just like a regular loan, interest continues to be charged on the sum, but is only repaid in full when your home is sold, you pass away or, most commonly, you move into aged care.

A common use of a reverse mortgage loan is to retain the house while you move into aged care.

Want to talk about a reverse mortgage?

Give me a call, and I'll start the process for you. Non-judgmental, non-pushy help.

Finance Broker - Matthew Stack - 0423 237 242

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