My parents visiting my grandparents at their hotel in Spain circa 1968...
Why only sometimes?
To be frank, in many situations, it’s not the answer.
If you’re employed and have verifiable income, then it will be cheaper to borrow in the form of a more traditional mortgage.
Even if you have good cashflow from your investments, a traditional mortgage may suit you better.
There are even mortgage vehicles out there that allow you to make no payments, again providing you can income qualify for the financing.
Probably around five percent of the time though, you’ll want to preserve the cash flow that you have ( or even improve it ) and borrow money for a specific purpose – be it managing debt or helping out family or a raft of reasons that are important to you.
That’s when a reverse mortgage shines. The modern versions have all the flexibility of a traditional mortgage, right down to making payments and paying down lump sums -as well as the flexibility to just have it sit there.
The choice is yours and that’s the most important feature of any mortgage financing – Choice.
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