Reverse Mortgage Payment Options

Options You Should Consider Before Talking To a Reverse Mortgage Specialist

When you're considering a Reverse Mortgage in Florida, you should consider other options before speaking with a reverse mortgage professional. Here are a few tips to help you.

Seek Government Aid

  • Florida Association for Community Action. Low‐income homeowners may get help with things like emergency house repairs, weatherization, energy assistance, legal aid, and more through regional community action programs.
  • VA benefits for Elderly Veterans. Two VA programs provide certain elderly Veterans with an additional monetary amount if you are eligible for or receiving a VA Pension benefit.

Aid and Attendance (A&A) is an increased monthly pension amount paid if you meet one of the conditions below:

  • You require help performing daily functions, which may include bathing, eating or dressing.
  • You are bedridden.
  • You are a patient in a nursing home.
  • Your eyesight is limited to a corrected 5/200 visual acuity or less in both eyes; or concentric contraction of the visual field to 5 degrees or less.

Housebound is an increased monthly pension amount paid if you are substantially confined to your immediate premises because of a permanent disability.

Talk To Your Family

Telling your children or even your spouse that you need to tap into your home’s equity can feel like you’ve failed them. Fortunately, In many cases, family members offer to help, making a reverse mortgage unnecessary. While others get confirmation to go ahead and use the money for whatever they need.

Short-Term Loans

Credit cards are an easy cheap to cover short term debts and they can be used over and over and there are no liens against your house to secure the debt. However, credit cards can be a financial trap. Eventually the credit limit will be reached, a late payment occurs, and the credit card rate can go out of control. Your credit limit can suddenly be reduced making your hardship worse.

Home Equity Lines of Credit (HELOC)

HELOCs are less expensive to obtain than other types of mortgages, are typically interest only for a specific period of time and you may be able to tap into more equity than a reverse mortgage. They are open ended making the line of credit reusable as the principle is paid off.

Income and credit qualification standards are higher for approval.

The more you draw, the more you pay. Payments become larger and larger the more you use the line, making it necessary to draw more and more money each month. The full loan could be due after the initial interest only term with the borrower unable to refinance the debt or pay it off. This could lead to foreclosure and loss of the home.

As with credit cards, equity lines of credit can be reduced at any time if home values fall or if the lender believes your becoming a credit risk.

So there you have it. The pros and cons of the options you should consider before you speak with a reverse mortgage professional.