Home Prices In Utah May Spur Higher Reverse Mortgage Activity
Reverse mortgage programs in Utah seem like a better option now due to the increasing home rental prices, which are exceeding the salary of low-income households.
Those who earn the national minimum wage of $7.25 per hour would have to work 98 hours every week to afford a two-bedroom unit in the state, according toa National Low Income Housing Coalition report.
While higher home prices are a bane for buyers and tenants, it presents an excellent opportunity for retirees to unlock the value of their investment. A reverse mortgage allows Americans who are at least 62 years old to access the equity in their homes without having to sell it. This type of mortgage, however, carries a lot of responsibility for homeowners in terms of real estate taxes and insurance.
Even if there is no monthly payment, those who apply for a reverse mortgage would still need to insure their home and pay property taxes. The risk of default remains a probability as well, since unexpected expenses such as healthcare costs may cause you to miss on payments. You also need to live in the property for the duration of the loan. Otherwise, it would immediately become due.
Retirees can protect themselves by doing a lot of research and consulting with different mortgage companies. You can shop around for at least three mortgage lenders to compare the best rates and find the best deals.
Take note that your reverse mortgage would depend on your age and value of your property among other factors. Older people who own houses with higher values tend to get more money.
If done right, homeowners can see a reverse mortgage as a valuable addition to their retirement fund. When choosing a mortgage firm, it’s better to consult with a company that offers multiple loan options.