Federal Employees and Reverse Mortgages
To qualify for a reverse mortgage
- Also Read: Splitting Federal Retirement Benefits After Divorce—Here’s What You Need to Know
- Also Read: Early Retirement for Federal Employees: The Must-Do List Before You Hand In That Notice
- Also Read: What Does the Federal Retirement Process Look Like?
If you consider looking into a reverse mortgage, seek the advice of a qualified financial advisor who is knowledgeable and willing to go over the guidelines and stipulations in detail. You may also contact a certified U. S. Department of Housing and Urban Development (HUD) Reverse Mortgage Counselor. This is something you should discuss with your family so that all options can be weighed.
Reverse Mortgages and Regular/Forward Mortgages
It is important to distinguish the difference between a reverse mortgage and a regular mortgage sometimes called a forward mortgage. With a regular mortgage you take on debt to buy your home. As you make monthly payments and pay the loan off, you build up equity. A reverse mortgage allows you to get cash or increase your monthly income by taking on debt and reducing the equity in your home. With a reverse mortgage there are no monthly mortgage payments. You take on debt without rebuilding the equity in your home.
To consider a reverse mortgage is an individual decision and one that requires you being educated so that you can make an informed decision and one you are comfortable with.
P. S. Always Remember to Share What You Know.
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