Alternative To Reverse Mortgage
The Truth About The Bridgit Alternative to Reverse Mortgage
If you’re an older homeowner looking to downsize or rightsize your home, you may have considered looking for an alternative to reverse mortgage loan.
While reverse mortgages seem ideal on paper as housing finance for retirees, they can significantly reduce your home equity over time, affecting what you get when you move out or what you leave for others when you die.
At Bridgit, we understand the complexities of property finance choices for retirees. We’re here to help you make informed decisions about your home equity and how a bridging loan may be just what you’re looking for.
What is a reverse mortgage?
Reverse mortgages are short-term loans secured against property that allow individuals aged sixty or older to turn home equity into non-taxable funds. It’s also suitable for individuals with a lot of home equity options but limited cash reserves, as a reverse mortgage allows them to stay in their home and still receive the funds they need.
With a reverse mortgage, the homeowner does not have to make repayments while living in the home. The mortgage is fully repaid, including interest and fees, when the homeowner sells the house, moves out, or passes away.
Among the drawbacks of reverse mortgages is that they typically carry higher interest rates than standard home loans. They can also limit future home loan options or property equity choices, as the loan must be repaid upon death or moving out.
Homeowners should consider the long-term financial impact of short-term mortgages like this and consider an alternative to reverse mortgage loans instead. To that end, Bridgit is here to offer loan alternatives in the form of bridging loans so that you have choices when it comes to alternative mortgage plans.
Disclaimer: Unless otherwise specified, the opinions expressed in this article are strictly for general informational purposes only and should not be taken as financial advice or recommendations. Any views are subject to change without notice at any time.
If you’re an older homeowner looking to downsize or rightsize your home, you may have considered looking for an alternative to reverse mortgage loan.
While reverse mortgages seem ideal on paper as housing finance for retirees, they can significantly reduce your home equity over time, affecting what you get when you move out or what you leave for others when you die.
At Bridgit, we understand the complexities of property finance choices for retirees. We’re here to help you make informed decisions about your home equity and how a bridging loan may be just what you’re looking for.
What is a reverse mortgage?
Reverse mortgages are short-term loans secured against property that allow individuals aged sixty or older to turn home equity into non-taxable funds. It’s also suitable for individuals with a lot of home equity options but limited cash reserves, as a reverse mortgage allows them to stay in their home and still receive the funds they need.
With a reverse mortgage, the homeowner does not have to make repayments while living in the home. The mortgage is fully repaid, including interest and fees, when the homeowner sells the house, moves out, or passes away.
Among the drawbacks of reverse mortgages is that they typically carry higher interest rates than standard home loans. They can also limit future home loan options or property equity choices, as the loan must be repaid upon death or moving out.
Homeowners should consider the long-term financial impact of short-term mortgages like this and consider an alternative to reverse mortgage loans instead. To that end, Bridgit is here to offer loan alternatives in the form of bridging loans so that you have choices when it comes to alternative mortgage plans.
Disclaimer: Unless otherwise specified, the opinions expressed in this article are strictly for general informational purposes only and should not be taken as financial advice or recommendations. Any views are subject to change without notice at any time.
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