5 Reasons Why a Reverse Mortgage Loan is Not a Last Resort
If you’re an older homeowner with good credit, should you consider a reverse mortgage?
Reverse mortgages have long been viewed through a negative lens — an option for older homeowners who have run out of other options. In fact, they can offer retirees numerous benefits as a smart financial planning tool. As with any financial commitment, it requires careful consideration and education to ensure it’s the right decision for your situation.
Here are six reasons to do your homework before dismissing the idea of a reverse mortgage too quickly:
1. It provides financial wiggle room. With substantial equity already built up in your home, a reverse mortgage loan can provide the extra funds and flexibility to live comfortably during retirement. From home renovations to increase safety and comfort to simply having a line of credit at your disposal, this type of loan provides a financial safety net for whatever your purposes may be.
2. For those without pensions or adequate retirement savings, your reverse mortgage proceeds can be a viable option for unexpected expenses such as healthcare costs. You worked hard to purchase your home and now you can make it work for you.
3. It increases the chances of not outliving your savings. Taking out a reverse mortgage line of credit during your early retirement years can allow other investments such as stocks, bonds or IRAs to continue earning compound interest.*
4. It can delay the necessity to collect Social Security. Did you know that your annual Social Security benefits increase eight percent for every 12 months that you delay from ages 62 to 70? By borrowing against the equity in your home, you can make sure you have the funds you need for everyday life before tapping into social security.
5. It’s a solid back-up plan. Even if you don’t need funds now, you never know what the future may bring. Having a reverse mortgage line of credit on the backburner means its there when you need it. And if the market is underperforming and you’re worried about your investments, you can leverage your home equity rather than liquidating your assets.
Check it out for yourself
At Reverse Mortgage Funding LLC (RMF), our goal is to help more older homeowners live the retirement they deserve. Call us today at (888) 277-1567 to find out how a reverse mortgage loan can help you.
This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans retire more freely, in the comfort of their own homes. As a result of our commitment to providing an extraordinary and positive customer experience, we have earned a 98% customer satisfaction rating; a 4.7-star / Excellent score on Trustpilot; 4.8 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call 888-277-1567 to speak with a licensed reverse mortgage specialist to learn about our retirement financing products and solutions.
*As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and maintenance.