• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Because dads don’t always think like moms™

  • Dad
    • Celebrities
    • Gay Dads
    • Sex
    • Single Dads
  • Pregnancy
    • Labor or Delivery
    • Pregnant Wife
  • Baby
    • Baby Naming
    • Feeding
    • Sleep
    • Toilet Training
  • Kids
  • Teens
  • Activities
    • Local
    • By Age
    • Movie Reviews
    • Celebrations
  • Toys
    • We Recommend
    • Toys
  • Coaching for Dads
  • Great Dad Talks Podcast

Wrapping your head around reverse mortgages

July 8, 2020 by Contributing Authors

Retirement always sounds like a good idea on paper, but retirement with a little spending money sounds better. You will not be the first person to have wondered how to free up some more money for use during their retirement. A retirement home loan, also known as a reverse mortgage, is a perfect solution, exclusive to those of retirement age. Here’s a breakdown of everything you need to know about this unique kind of loan.

Payback time 

When it comes to paying back your loan, you have far more time to pay back a reverse home loan than you do for a regular mortgage. A reverse home loan is designed to provide you with some backup cash during your retirement, by giving you back part of the total value of your home. The payback terms are dictated by how long you choose to live in the house. If you choose to leave the house after a year of taking out the loan, the repayment will be due then. If you choose to leave 10 years after taking out the loan, that is when the repayment will be due. The flexible nature of this condition gives you a lot of control over the loan period and its repayment.

Don’t forget the basics
Although this may seem idyllic at the outset, you do need to understand that, as with any loan, you will still be subject to paying interest on the money you borrowed. If you are unable to pay back the loan amount, including its interest, after the loan period has ended (when you choose to leave the house), the house will be sold to cover outstanding costs. 

Therefore, it is important to calculate the current value of your home accurately before taking on a loan. Your lender will assist you in determining this value using a reverse a home loan calculator, which is a tool that helps to determine the value of your house by taking factors such as age, location, and condition into account. Because you are prohibited by law to borrow the full value of your home, this calculator will help to determine what percentage of the total value you are eligible for, in the form of a loan.

Taking your money into your own hands

Once your lender has approved your application, you will need to choose how you will take delivery of the funds. Luckily, there are several available options when it comes to deciding how you want to borrow it. You could set up the payments as recurring episodes, like when you received a monthly salary. It helps to create predictability around monthly income and you’ll know what you have to spend in a month.

Another popular option is to set up the funding as a line of credit, so that you can access the money as and when you need it. Finally, you could opt to have it paid out as a single bulk payment, which means that you will have the full amount available to spend at any point as you require.

Filed Under: Money

Primary Sidebar

  • Facebook
  • Instagram
  • Pinterest
  • Twitter
  • YouTube
SIGN-UP TODAY to receive the only baby newsletter written by dads, for dads. Act now and receive a free copy of the popular GreatDad E-Book!
My baby's due date or birthday :
Profile picture
Privacy Policy and Terms
Baby Name Finder!

what's in a name

  • Show names for:
  • Boys
  • Girls
  • Either
Finding a name you can both agree on isn't always easy. Use our simple name generator to get started.
First Letter
Last Letter
Number of Letters
Origin
Find a name!

More to See

family under a cardboard

Over 40? The Five Types of Insurance You Should Have

October 22, 2022 By Contributing Authors

A Dad’s Guide to Bonding with Your Kids Through Computer Games

May 5, 2022 By Contributing Authors

Tags

529 Plan budgeting for teens college savings compromise dad dads Father's Day fatherhood friendship in-laws love marriage Movie Review parenting advice parenting skills prepaid cards ritual Sundays travel vacation

Footer

Hi mom!

Would you like to share this site with your husband or a friend?

Just enter his email address and your name below and we'll let him know all about GreatDad.com.

His email address
Your Name

Recent

  • Special Clarity session – $25
  • Over 40? The Five Types of Insurance You Should Have
  • A Dad’s Guide to Bonding with Your Kids Through Computer Games
  • 5 Ways to Prepare Your Child for a Surgical Procedure
  • How to get kids excited about dental hygiene

Search

Tags

529 Plan budgeting for teens college savings compromise dad dads Father's Day fatherhood friendship in-laws love marriage Movie Review parenting advice parenting skills prepaid cards ritual Sundays travel vacation

Copyright © 2023 . GreatDad