6 Reasons Why a Reverse Mortgage Might Be Right For You

Even though a reverse mortgage may not be for everyone, but for some – it could be the answer that they are looking for.  A reverse mortgage is a great product that can help seniors and retirees with their financial needs, as well as be an asset to their retirement plans.

 

Here are 6 common scenarios that can call for a reverse mortgage.

1. You’re running out of money.

Some retirees fear that they have not saved nearly enough for retirement. This scenario is plausible, especially if you did not plan for unexpected expenses or emergencies. A reverse mortgage can be put in a line of credit that can allow retirees to take out money whenever they need it to prevent them from running out of money in their retirement.

2. You’re going through a loss of income.

A sudden death or loss of pension can cause you to suddenly see a loss of income. Oftentimes, this is not something you can plan for, but a reverse mortgage is available to help seniors cope with any drop in their income.

3. You’re having problems keeping up with mortgage payments.

When you retire, the ideal situation is that your mortgage is already paid off. However, some people may find that’s not the case, and they still need to keep up with the mortgage payments. Because there are no restrictions on how reverse mortgages are used, it can be used to help eliminate the monthly mortgage payment on your home and you do not need to worry about paying back the loan until you leave the home permanently.

4. You don’t want to take out your Social Security benefits too early.

Did you know that the longer you wait to take out your Social Security benefits, the more that you can receive? While the earliest age you can receive your benefits is 62 years old, if you hold off on receiving your benefits, you may be eligible for more money. A reverse mortgage can be used to help you by providing the income that you need while you await your benefits. It is important to note that having a reverse mortgage will not affect your Social Security benefits.

5. You need help paying for medical expenses.

A huge benefit of a reverse mortgage is that there are no restrictions on how you can use it. Even though Medicare is available, there are sometimes expenses that you may encounter, such as co-pay, medicine and more.

6. You want to buy a new home.

A HECM for Purchase is a little known program that can help seniors purchase a new home with a reverse mortgage. If you are considering to purchase a new home in your retirement, a reverse mortgage can be a good option to help you with finding the retirement home of your dream.

 

 

Image courtesy of [Stuart Miles] / FreeDigitalPhotos.net