There are plenty of national financial factors that impact the daily lives of Connecticut residents: inflation and interest rates principally, among others. When we look at our own individual financial situations in light of what might happen at the national level, it can be confusing to come up with the right solution to the issues we face. For some, the idea of a reverse mortgage may be on the table.
Reverse mortgage basics
As our readers may have guessed, a reverse mortgage is a loan that is involved with your home. The difference, however, is that the loan amount is based on the equity you have in your home – meaning the amount of money you would likely make if you sold your home, while accounting for the subtraction of any amount you still owe. So, you may be able to borrow a significant amount if you have a home that is paid off or nearly paid off.
Obviously, you must pay the loan back. Over time, those payments may be significantly impacted by interest. And, of course, if you move from your home the reverse mortgage must be paid off.
Financial tools like a reverse mortgage may be something to consider in certain circumstances, especially for older Connecticut residents. However, when it comes to real estate transactions of any kind, there is always fine print to be aware of. If you are thinking of a move that might impact your real estate, be sure to get the right legal information about all of your available options.