Your home is likely your most valuable asset. For South Florida seniors, it can also be a powerful financial resource — but only if you approach it with the right information. Before you tap into your home equity, here are five questions worth asking.
1. What Is My Goal — and How Long Do I Plan to Stay?
Different home equity products work better for different situations. If you plan to stay in your home for the long term, a reverse mortgage may offer the most flexibility.
2. What Are the True Costs?
Every home equity product comes with costs — origination fees, closing costs, interest rates, and in the case of reverse mortgages, mortgage insurance premiums. Ask for a full breakdown in writing before you commit to anything.
3. How Will This Affect My Heirs?
If leaving your home to your children or grandchildren is important to you, that should factor into your decision.
4. Am I Comparing Apples to Apples?
The Annual Percentage Rate (APR) and total loan cost over time are what really matter — not just the interest rate.
5. Is This Broker Licensed and Experienced with Senior Borrowers?
Ask your broker how many reverse mortgages they have closed and whether they are licensed in Florida.
If you would like to explore your options in a no-pressure setting, register for our free webinar on October 5th — Gavin Susman will walk through reverse mortgages, HELOCs, and other home equity options for South Florida seniors and answer your questions live.