Reverse Annuity Mortgages
If you are aged 62 or over, you could be sitting on a small fortune. Although many of us simply think of our home as a place to live, it could actually provide us with a tax-free lump sum or monthly income. This is thanks to reverse annuity mortgages. This is ideal if you have a house where you have paid off all or most of the existing mortgage. It can go a long way to supporting your other retirement income provisions.
Making the decision to take out this type of loan should not be taken lightly. Here are some of the steps that you may have to go through before being approved by a reverse mortgage lender.
Do as much research as you can about reverse annuity mortgages using the Internet and independent organizations like the AARP. Find out about the benefits and also the potential disadvantages.
Contact a number of banks and/or mortgage brokers to discuss the products that are available. They should be able to give you some firm figures on what the interest rates and charges will be made.
Seek counseling from an HUD-approved counseling agency. They are an independent organization and will give you honest advice as to whether a reverse annuity mortgage is right for you considering your circumstances. They may also be able to suggest some alternative ways of raising finance to supplement your retirement income.
Speak to your family so that they are aware of the provisions that you have made regarding your property and funding your retirement.
Apply for the reverse annuity mortgage. A valuation will be carried out on your property that will allow a calculation of the loan amount to be made. The application is then underwritten and you should hear back in 4-8 weeks.
If you agree with the final figures you can sign the documents to get the mortgage started. You still have a 3-day period after signing to change your mind.
As you can see, the process for getting a reverse annuity mortgage is quite straightforward. If you research the market and find that you fit the criteria, you could soon be enjoying a brighter future.