Make Reverse Mortgages Work For You

Who can benefit from a reverse mortgage loan?

Anyone can benefit, however, it is up to you to decide if it’s the right choice for you.

Some people believe that the FHA-backed reverse mortgage loans are meant only for people who need help financially. This is actually one of the bigger misconceptions about reverse mortgages, in actuality, people of different income backgrounds can benefit from a reverse mortgage loan.

To qualify for this special product, you must be at least 62 years of age or older and have substantial equity in your home for the reverse mortgage to make sense. With a reverse mortgage, you are not required to make monthly payments as long as you continue to live at home.  Also, because there are no income requirements on this loan, you do not have to worry if you have too little or too much income to qualify for the loan.

Reverse mortgages can be a great product for anyone of any financial background, as it can help borrowers out in many different ways. One of the benefits of a reverse mortgage is that you can spend your money in any way that you please.

Here are some ways that reverse mortgages can benefit you, no matter your income background.

1. Retirement planning: Reverse mortgages can be an ideal way to gain tax-free income to help supplement your retirement planning goals. If you have a mortgage on your home, you are able to pay it off using funds from your reverse mortgage, and you do not need to worry about making additional payments throughout your retirement. Some borrowers turn to using their reverse mortgage as a line of credit that they can use when they need it or to prepare for unexpected financial needs. Along with your current nest egg, you are able to add on more in case of a rainy day.

2. Delay Social Security Benefits: Social Security benefits are available beginning at the age of 62, but if you postpone, it continues to increase until you are 70 years old. That means that if you delay your Social Security benefits until you are 70 years old, you can get the most out of it. Reverse mortgages can be essential in helping provide you with supplemental income as soon as you are 62 years old, and allow you to await the opportunity to receive the most out of your benefits.

If you have any questions regarding reverse mortgages, our Senior Advisors are available at 1-888-808-8486.

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