Retiring, planning for retirement, and actually living out your golden years can be among the most exciting times in your life. They can also be among the most daunting. The choices can feel overwhelming and might make some seniors feel unsure of themselves. Some seniors may even feel like they have lost their power.
A reverse mortgage can help seniors make choices based on possibility not fear.
A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM), allows seniors age 62 and older to convert a portion of their home equity into cash. The loan requires no monthly payments and lets them retain ownership of the property. The equity built up can be paid to them. Unlike a traditional home equity loan or a second mortgage, they do not have to repay the loan until they no longer use the home as their principal residence or fail to meet the obligations of the mortgage.
Seniors can use the money from a reverse mortgage to:
• Build an emergency fund
• Purchase long-term care insurance
• Buy a safe and reliable car
• Keep savings in a retirement fund for longer-term growth
• Stay in their own home, in their neighborhood, with their friends
• Live debt-free
• Build a cabin on a lake
• Remodel a kitchen or bathroom
• Take a well-deserved vacation
• Earn a college degree
• Support a favorite charity
How seniors use the money they receive from a reverse mortgage is up to them. The choices are limitless.
To learn more about how you or a senior you love can take back their power, contact us today, or click here to have more of your questions answered. Remember, there’s power in knowledge!