Secure your retirement with a reverse mortgage
The baby boomer generation has saved a median of only $202,000 for retirement, according to the Transamerica Center for Retirement Studies.
But this amount certainly won’t last 20 or more years of retirement. And at a 4% yield, it would only produce $650 per month in interest income. That’s hardly enough to retire on.
So how do you afford life’s ongoing expenses?
Well, a recent Money article pointed out that U.S. homeowners are sitting on $8.1 trillion in equity. Baby boomers likely hold the lion’s share.
Why worry about retirement when you are so equity-rich? You purchased your home years ago. You faithfully made your payments.
Now it’s time to let your home reward you for your hard work.
Make the most of your home equity with a reverse mortgage
- No more monthly mortgage payments
- Receive cash or line of credit to manage expenses
- Income received is likely non-taxable
- Opens options to age in place by making your home affordable
- Avoid draining your assets to afford retirement
- Thrive in retirement with financial stability
How it works
Those 62 and older can use a reverse mortgage as a powerful retirement tool that takes the pressure off of you and your family.
It eliminates your monthly mortgage payments. Plus you receive money from the equity you’ve already paid into your home.
Choose the best way to use your home equity with one of three options:
- Receive a lump sum: Manage the money your way with a fixed interest rate.
- Open a line of credit: Borrow money as needed and only pay interest on what you borrow.
- Get monthly payments: Receive $500, $1,000, or even $2,000 per month for life.
This opens up possibilities for comfortably affording travel, visits with loved ones, and aging in place. And the loan doesn’t need to be paid off until your status at the home changes.
Get a reverse mortgage from one of our prevmium lenders
- Check your approved amount
- Monthly or lump-sum payments
- Eliminate your current mortgage
- Increase monthly cash flow
Reverse Mortgage FAQs
At least one applicant needs to be 62 or older. You can add a younger non-borrowing spouse to the loan documents.
You typically need more than 50% equity in the home for the reverse mortgage to be worth it. You must live in the home at least 6 months per year, must maintain it, and keep up with property taxes, insurance, and HOA dues.
With a reverse mortgage, you get a new loan that pays off your current mortgage and allows you to borrow from your home equity. The new loan does not require a monthly payment.
You receive either a lump sum of cash, a line of credit, or monthly payments that you can use to afford other life expenses. The amount of your new loan will vary based on your age, home equity, property value, and other factors.
A reverse mortgage doesn’t require monthly payments, so it frees up vital income in retirement that would otherwise go toward paying your mortgage. Keep in mind, you do need to maintain the home and continue to pay property taxes and insurance.
In addition to freeing up monthly payments, a reverse mortgage also allows you to borrow from your home equity to access cash for other expenses.
Heirs can sell the home or pay off the reverse mortgage when the homeowner passes away. They are never responsible for shortfalls if the home is worth less than the loan amount at that time.
In short, your family has a chance to keep the home, sell it for a profit, or forfeit it to the lender without penalty.
