Obtaining a Reverse Mortgage Is Not The Right Solution

Sam, 64, and June, 65, had always wanted to travel the world and finally had the time after all their kids were grown. They were planning on selling their house in two or three years and using that money to buy a RV and travel. They were also considering looking into a federally insured reverse mortgage in order to have some extra money before they sold their house. Their home was worth $400,000 and was free of liens. After calling a reverse mortgage specialist, they found that if they wanted to receive $15,000 in a lump sum and the rest in a credit line, their closing costs would total approximately $16,000. Because of the upfront costs associated with this loan, it would only be beneficial for them if they planned to stay in their home for a longer period of time and take advantage of additional equity.

To resolve their problem, their loan specialist suggested using a Home Equity Line Of Credit (HELOC) if they needed money immediately. The reasoning behind this was that the closing costs and monthly payments were minimal, making it a better solution for the short term. Sam and June were happy that they decided to talk to Senior Reverse Mortgage because they knew they had been given good advice. With their loan specialist's help, they were able to secure a HELOC and did not have to worry about losing equity to high closing costs.