Why think about a Reverse Mortgage in future?
It is probably not something you even contemplated about up until now, especially if you are still a young family newly settled into your own home or living by yourself in a property that you bought as opposed to renting.
However, it might be something to contemplate in future though. In the meantime, you can utilize a Reverse Mortgage Calculator to get an idea of what you could potentially receive based on your age, marital status, and the current value of your property.
It’s not going to be something you would do until you are at least into your early 60’s, but it’s good to be aware of this option for the future.
Essentially you would sell your home and use up the free cash to fund your living expenses. Instead of paying a lender money each month, in effect you would be the one receiving money in the form of equity that is tied up in your home.
You would need to be at least 62 years of age, and the property that you would be using a reverse mortgage on would need to be your main property of residence as opposed to a second property.
You would need to keep up with payments of the home, so the usual really, taxes, insurance, maintaining the property, and not letting it get run down, but once that is all sorted, the money is yours to use as you wish.
Have a history of poor credit? Not to worry!
One of the concerns you may have is whether you would still be eligible if you have a poor credit rating.
This would not affect your ability to take out a reverse mortgage as the criteria that needs to be met is the value of equity tied up in your home as opposed to worrying about the ability to meet payment demands monthly.
So even if you possess a low credit score this would not hinder your ability to take out the reverse mortgage in the first instance and your application would still be processed accordingly.
Money, money, money!
Once you have freed up your money that is tied into the property, you can still utilize the remainder of the money as you wish, once you have settled all the prior bills. You could use the rest of the money to pay for things like food, travel, leisure activities, and so forth.
It is still your money to do so as you wish. When you are a family man and have three daughters and a wife, there is always something to purchase or pay towards!