A reverse mortgage is a rapidly growing popular financial tool among seniors who look to tap their home equity for additional retirement income. For homeowners in Shorewood, WI, it is important to understand how reverse mortgages work and what benefits and possible drawbacks are involved with such products.

A reverse mortgage is a type of loan that is available to homeowners 62 years of age and older. It is a way for seniors to partake of the equity in their home and turn it into cash. Unlike a traditional mortgage, there are no monthly mortgage payments due. The loan becomes repayable when the homeowner decides to sell the house, vacates permanently, or upon death.

• Supplement Retirement Income: For most seniors, this is an additional source of income. It helps to cover a number of living costs, health care costs, and other financial needs without selling their home.
• No Monthly Payments: The fact that this plan does not require borrowers to pay back the loan on a monthly basis is the single biggest advantage. And, yes, you are still responsible for property taxes, homeowners insurance, and maintenance.
• Stay in Your Home: If you use this program, you will be able to stay in your home and continue living there under its terms.
• Flexible Payout Options: You can opt to have the loan proceeds distributed as a lump sum, line of credit, monthly payments, or a combination of these options.

Whether or not a reverse mortgage is going to be the best fit in the long term is going to be up to you. This decision is often better when made with the help of a financial advisor or reverse mortgage counselor, and after receiving all the necessary information and understanding the effects.

If you finally decide to take a reverse mortgage, you must find a legitimate lender in Shorewood. Look for experienced lenders who have a good reputation and customer reviews. Additionally, make sure they are FHA-approved, since most reverse mortgages are FHA-insured.