Retirement News with Professor Craig

Retirement News with Professor Craig

The Retirement News blog is dedicated to the financial and physical health and well-being of older Americans. 
Whether you're already in or nearing retirement, you will find important, topical information in the blog to help you make informed decisions on your road to retiring more freely.
As a 25-year veteran in the financial services industry and a certified trainer and teacher, Professor Craig's #1 goal is to help you thrive in retirement with financial peace of mind. 

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In Times of Market Volatility, A Reverse Mortgage Loan Can Be Your Secret Weapon
Retirement News, Retirement Planning, Retirement Tips, Reverse Mortgage Facts

In Times of Market Volatility, A Reverse Mortgage Loan Can Be Your Secret Weapon

You may have considered taking out a traditional Home Equity Line of Credit or selling your home to monetize the equity just to make ends meet until the market recovers. But most experts don’t recommend selling following a big drop.

For older homeowners, there’s an exclusive tool to help you ride out stock market storms while allowing your investments to grow: the reverse mortgage loan.

The loan less traveled

Home equity represents about 66% of the average retired American’s wealth. And as home values continue to soar, respected financial experts — including the Center for Retirement Research at Boston College, researchers at Texas Tech University, and Dr. Wade D. Pfau, CFA® — have surmised that older homeowners may have more financial security when using a reverse mortgage to access this important and often under-utilized retirement asset, all while continuing to live in and own the home. As with any mortgage, you must meet your loan obligations, keep current with property taxes, insurance, and maintenance.

For example:

  • A reverse mortgage line of credit can be a great financial tool that you can use as a “rainy day fund.” You can leave it untouched when you don’t need it, but it allows you to be more financially prepared when you do need additional funds — such as when invested assets are under-performing.
  • It has a unique growth feature that you can’t get with a traditional home equity line of credit: The unused amount grows over time, giving you access to more funds as time goes on. (If part of your loan is held in a line of credit upon which you may draw, then the unused portion of the line of credit will grow in size each month. The growth rate is equal to the sum of the interest rate plus the annual mortgage insurance premium rate being charged on your loan.)
  • You may also choose to receive your funds as a lump sum or monthly payments to supplement your retirement income or to refinance your mortgage and/or consolidate major debt, all while you avoid tapping into your savings and invested assets. Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages. In certain states, RMF’s EE loan provides a fixed-rate term payment option.

Another huge benefit, a reverse mortgage has a flexible repayment feature. YOU decide whether you want to make monthly mortgage payments or none at all. As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, maintenance.

As always, if you have concerns about stock market volatility and how it may impact your retirement accounts, we encourage you to speak with your financial advisor. 

What goes up, must come down

Market conditions are constantly changing. But as you near or enter retirement, you might not have time on your side to recover from a down market. A reverse mortgage loan may offer the protection you need, when you need it, to keep your retirement lifestyle on track. Reach out to Reverse Mortgage Funding LLC (RMF) at (888) 277-1567 to learn more about this unique opportunity.

This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders. We are dedicated to helping older Americans live the retirement lifestyles that they imagined and deserve, 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 5-star / Excellent score on Trustpilot; 4.5 out of 5 stars on LendingTree; and an A+ rating with the Better Business Bureau. Call (888) 277-1567 to speak with one of our experienced reverse mortgage specialists to learn about our retirement financing products and solutions.



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A More Flexible Home Equity Loan

If you’re 62 or older, there is a home equity line of credit option that offers greater financial flexibility than a traditional Home Equity Line of Credit (HELOC). It’s called a Home Equity Conversion Mortgage (HECM) line of credit. 
If you have an existing mortgage or home equity loan you could refinance them with a HECM line of credit and get enhanced benefits, including a flexible payment feature and a line of credit that GROWS when left untouched.
As with any mortgage, you must meet your loan obligations, keeping current with property taxes, insurance, and keeping your home in good condition.

Equity Elite Reverse Mortgage

Put Your Home Equity to Work for You

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By clicking "CALCULATE", you are providing your signature and express "written" consent to be contacted by or behalf of Reverse Mortgage Funding LLC, its affiliates and/or its agents (collectively Company) at the telephone, email or mailing address that you have provided for purposes of fulfilling this inquiry about reverse mortgages and/or the Company's products or services, even if you have previously registered on a "do not call" government registry or requested Company to not send marketing information to you by email and/or direct mail. You agree that the Company may use automatic telephone dialing systems and prerecorded voice messaging in connection with calls or texts made to the telephone number you provide even if the telephone number is assigned to a cellular or mobile telephone service or other service for which the called party is charged and are representing that you are the regular user of provided number. You understand that you are not required to consent to receiving autodialed calls or texts as a condition of any reverse mortgage and/or purchasing any Company products or services. If you do not wish to authorize Company to contact you in this manner, you can call 888-277-1567 to complete your request. You understand that you can revoke this consent at any time.

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