Reverse Mortgages Are Not Just a Last Resort Solution

Reverse mortgages are often seen as the last resort solution to help aide senior citizens who are strapped for cash. However, that way of thinking is quickly changing and now more and more seniors are looking into applying for reverse mortgages, even if they do not consider themselves to be “low-income.” The previous school of thought that reverse mortgages are for “cash poor” and “house rich” seniors is no longer true, as seniors are using it as part of their retirement planning.

Studies have recently shown that more and more people who are close to retirement are not saving enough money to help during their retired years or were facing setbacks that cost them potential retirement funds. With a reverse mortgage, it can allow seniors to be able to create extra padding in their retirement funds for any unexpected events that may cost money. This can include unexpected health care costs, the need for a new car or repair to the home.

An option for seniors who are looking to apply for a reverse mortgage loan as a financial planning tool is to use the line-of-credit option for receiving their payments. This allows borrowers the flexibility to take out as much money from their set line-of-credit at any point in time that they need it.

Whether you choose to apply for a reverse mortgage as your “last resort” or if you plan on using it as a financial planning tool, reverse mortgages can be a good idea for many individuals. To learn more about reverse mortgages, you can speak with an advisor at 1-888-808-8486.

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