Senior Strategy using a Reverse Mortgage..
Is the largest asset in your estate your home? Is the equity of your home the biggest part of your net worth. Is your equity part of your retirement strategy? There may be reasons why a retiree might consider tapping into their equity. The obvious is to maintain or enrich their quality of life.
Retirement Strategy
Obtaining a reverse mortgage is a consideration that may provide solutions to your retirement goals. I’ll list a couple of examples.
- Home improvements
- Eliminate your mortgage payment
- Aging in place planning and security
- Costs of anticipated medical care and expenses
- Supplement your Social Security, pension or other retirement income
- Postpone drawing Social Security benefits in order to qualify for higher monthly benefit
Tenured payments provide a monthly income that will continue even if the homeowner out lives the actuarial life-expectancy calculations. Retirees can live with the security of stable income. It should also be noted that the funds received through a reverse mortgage are “Tax Free”! IRS does not consider money borrowed through a reverse mortgage taxable income.
Non-recourse financing
The homeowner nor the heirs will ever owe more than the home is worth, even if the property declines in value OR if payouts exceed the property value! The lender cannot request of address any shortfall. Mortgage insurance compensates the lender for any shortfall.
These are just a few of the recognized objectives that a reverse mortgage may provide. Your financial advisor along with a reverse mortgage specialist can provide professional advice on the details and whether this would be a good option to consider. Family members should also be included in these decisions when possible.
Serious retirement strategy requires counseling and consultation. Do your due diligence and get all your questions answered.
If you need to start somewhere then give me a call.
Glad to help.
Rod Graves
619-587-9765
Reverse Mortgage Specialist
