How to Live Better With the
New Reverse Mortgage Program
In the past, reverse mortgages were considered a last-resort financial option for seniors. However, thanks to significant improvements, new protections, and better education, many financial planners now recommend the new reverse mortgage as a primary retirement strategy. Whether you want to update your home, take a vacation, or simply make ends meet, a reverse mortgage can be a powerful financial vehicle during retirement.
Here are 9 life-changing ways a reverse can provide you with the financial peace of mind you deserve.
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Regardless of which reverse product option you choose, they all eliminate your mortgage payment for life. For example, if you have a current mortgage of $400,000 with a $2,000 per month payment, a reverse mortgage will pay off your current mortgage and eliminate your $2,000 payment for life (you will still be responsible for paying property taxes and insurance). In this scenario, you will save $240,000 over the next 10 years! More specifically, here are the benefits of eliminating your mortgage payment: - Significantly increase cash flow - Afford to retire, go on vacations, or simply enjoy a better life - Remove the anxiety of wondering if you will be able to stay in your home in the future
Let’s face it, updating your home is very expensive…and even more costly now thanks to inflation. The good news is that a reverse mortgage could provide you the funds you need to finally remodel that kitchen or re-landscape your backyard. Also, according to the AARP, 2/3 of seniors say that their home lacks the necessary features that would allow them to age in place. If the amount you qualify for is more than your current loan balance, it’s time to call your contractor and make your home more beautiful and safer to live in. Here is why nearly all of my clients have used all, or a portion of their reverse mortgage proceeds to update their home: - Peace of mind knowing that they will age-in-place in a beautiful home for years to come - Add safety and practical upgrades to meet their aging needs - Increase the value of the home
If you’re like most working seniors, retirement planning can be stressful. Whether you are a year away from retirement or have no clue when you’ll be able to stop working, a reverse mortgage can help you retire sooner. If you have a mortgage, you can eliminate your mortgage payment. If you don’t have a mortgage, you can enjoy guaranteed, tax-free additional income for life. Either way, generating that additional cash flow can be the difference between waking up each day and driving to work, or walking to the backyard to enjoy some coffee with a loved one. Besides morning coffee, here are some other reasons my clients have enjoyed retiring sooner: - Spend more time with your family - Have time to take vacations before it gets too hard to travel - Reduce the stress of work and live a healthier lifestyle
Thanks to Medicare, most medical costs are covered. However, there are two very large health expenses that can be devastating to you and/or your children’s savings. I’m referring to the costs of at-home care or a nursing facility, which can both run upwards of $10,000 per month. Worse, these costs are typically not tax deductible or covered by insurance. Fortunately, with a reverse mortgage, many seniors can access hundreds of thousands of dollars from their home equity to pay for these major expenses. Visit our Reverse For Care page to learn more about this product. With a Reverse For Care mortgage, you can: - Afford the level of care you or your spouse needs to live better - Eliminate the financial burden on your adult children - Reduce the amount of stress put upon your spouse/caregiver
Aside from health concerns, perhaps the biggest fear facing retirees is running out of money. Put another way - what would happen if your retirement account or stock portfolio went to $0? With inflation near all-time highs, stock market volatility and geo-political unrest, many portfolios are on shaky ground. Not to mention, one of the fastest ways to deplete your portfolio is to withdraw money during a stock market correction, which is a necessity for many. A reverse mortgage can provide the protection you need to help preserve your retirement account or stock portfolio. By utilizing a Reverse Line of Credit, you can live off of a portion of your equity during an economic downturn, and let your portfolio heal. Once the markets rebound, you can resume withdrawing from your retirement or stock accounts. By doing this, you can significantly reduce the risk of outliving your savings. This will allow you to: - Enjoy peace of mind by mitigating one of the biggest fears facing seniors - Potentially leave more money to your heirs - Still retain the Reverse Line of Credit for future needs, such as at-home care
According to AARP, nearly 90 percent of adults over 65 want to remain in their current homes, or ‘age in place’. However, in many cases, they can’t afford the mortgage payment and are forced to sell their home and move to a smaller, more affordable house. A reverse mortgage can change everything. Imagine living in your home and having no mortgage payment? And if there is enough equity, you could even afford to remodel your home, or even convert some of the extra money into an additional income stream. Other advantages include: - Retain your comfortable and secure life and live in the home you love so much - Peace of mind knowing that you won’t be forced to move when you are older - Leave your heirs with a more valuable home vs. downsizing
One of the biggest decisions retirees need to make is when to start taking Social Security. As we all know, the longer you wait, the higher the monthly benefit amount. However, what if you need the income now, and can’t wait 2-3 more years? That’s where a reverse mortgage can really help. Depending on your situation, a reverse mortgage can either eliminate your mortgage payment, or generate tax-free income. Either way, you could generate the additional cash flow you need to match how much your Social Security benefit would be. That way, you can delay taking Social Security and maximize your benefit in the future. This will help you: - Enjoy hundreds more per month by taking Social Security in the future - Keep the line of credit for emergencies, or to pay for future health care costs - If deceased, your spouse will enjoy a higher monthly Social Security payment to live better
Aside from mortgage loans, nearly 75% of seniors have either credit card debt, or a car payment - totally about $10,000 in non-mortgage debt. Let’s say that your mortgage payment is $2,000 per month, and your car payment is $500 per month. A reverse mortgage can consolidate all of your debt AND eliminate both payments. Imagine how different your life would be if you had an additional $2,500 of cash flow each month, so you can: - Enjoy financial peace of mind - Have additional cash flow to do the things you love - Have more money to help out your children or grandchildren
Let’s face it, those stairs get a little bit harder to navigate each year. And with the kids out of the house, it can be difficult to maintain all of those extra bedrooms…not to mention the big backyard nobody is using. That is why many seniors look to downsize, or some call it ‘right-size’ their homes. The problem is that once the ‘big house’ is sold, most have to use every dollar to pay cash for the new home to avoid a mortgage payment. That leaves them with very little or no additional cash, which can be stressful and place a financial burden on their adult children. For example, if you netted $600,000 from your home, and purchased a new home for $600,000, there wouldn’t be anything left. Using this same scenario, purchasing a home with a reverse mortgage can not only help you preserve cash, but it can allow you to purchase a home worth more than $600,000. Imagine buying a nicer, one-story house for $800,000, keeping $150,000 in cash, and still have no mortgage payment? That is the power of leveraging a reverse mortgage to downsize your home. Other benefits include: - Afford to downsize to a nicer home in a better neighborhood, with better amenities - Preserve a significant amount of cash for emergencies and financial peace of mind - Have more room to have your adult children and grandchildren to visit