Reverse mortgages are helping seniors across the Seattle, Washington area live out the retirement of their dreams – and even helping many married couples and individuals purchase a new home to spend their golden years in. Those with a reverse mortgage are awarded the freedom to live without a mortgage payment – but they do still have a few financial obligations. These include:
Just as with a conventional home loan, a reverse mortgage homeowner is always responsible for paying their property taxes.
Reverse mortgage holders are required to purchase and maintain homeowners insurance.
All utilities will remain the responsibilities of the homeowner.
The homeowner or their family will be responsible for continuing to maintain and upkeep the home and its grounds.
Part of the qualification process for a reverse mortgage is a financial assessment. Much of this assessment is to ensure the borrowers are financially stable enough to take care of ongoing obligations. Because a reverse mortgage uses the equity available in the home to make it’s monthly mortgage payments, if major repairs are needed the homeowners will not be eligible for a home equity loan or similar. Ultimately, understanding and planning for these expenses is key to being prepared in the years to come. Working with and asking questions of a reputable reverse mortgage lender, as well as a reverse mortgage counselor, can help alleviate any concerns a homeowner may have.
Janis Layman is a Reverse Mortgage Specialist serving the Seattle, Lynnwood, Edmonds, and Shoreline areas of Washington. Contact Janis and learn if reverse mortgage is right for you.