Monetization of Tangible Assets

What Is A Reverse Mortgage, and Should I Get One?

A reverse mortgage is a method of monetization of tangible assets, typically for those 62 years old and up. It is a way to use an asset you have to get the money you need without losing the asset.

When you get a reverse mortgage, it means you are getting a loan against the equity you own in your home. Most participants own at least half of their home, while others have paid the home off completely. You can then use your loan money according to the terms you agree upon. Some programs require that you use the money for improvements to the home or something similar.

Other loan programs allow you to use the funds for just about anything. This is helpful when you want to help a loved one go to school, need extra resources to pay for necessities in retirement, or have another goal you would like to meet.

While you are putting this money to work in another area, you get to remain in the home. Unlike selling or renting out the home, you don’t have to move. As long as you repay your loan, you remain in the home. If you pass away before paying off your reverse mortgage, your heirs sell the property to pay off the loan. Any money left from the sale will go to your loved ones.

If you are working toward the monetization of tangible assets, a reverse mortgage is something to consider. However, there are many programs available with varying terms and requirements. You want to choose one that suits your needs and understand what you are agreeing to.

At Tangible Asset Management Solutions, we can help you determine if a reverse mortgage is a right move for you. And we’ll help you choose the best option for your goals. Give us a call today to learn more.