On days when work has you down, perhaps you daydream about your glorious retirement. The chance to do whatever you want, not having to worry about work or money, and being able to spend time with friends and family without any stress… But what if you don’t have enough saved up for retirement? Or what if your income isn’t high enough? If this sounds like you then a reverse mortgage for retirement planning might be just the thing for you. A reverse mortgage can help provide financial stability in retirement by giving retirees access to cash that they may need during their golden years. Read on for more information on how reverse mortgages work, how much it costs, and whether or not they are right for you!
Reverse Mortgage Explained
If you own your own home and are at least 62 years of age, a reverse mortgage provides an opportunity to convert some of your home equity into cash. In the most basic terms, a reverse mortgage allows you to take out a loan against the equity in your home where, as long as you are living in the home and have not sold it, you do not have to repay the loan during your lifetime. Financial experts say that retirees may consider a reverse mortgage for inflation protection. Opening a reverse mortgage line of credit early and allowing it to grow may offer retirees with the potential to help manage expenses or even work less if they choose.
Benefits of a Reverse Mortgage for Retirement Planning:
There are some benefits that a reverse mortgage can offer to retirees.
- First, it provides you with an opportunity for inflation protection. This is especially important as many people may not have access to a high income during retirement.
- Second, a reverse mortgage can give you more financial freedom in retirement. You are not limited to withdrawing just the interest earned on the account like with other savings vehicles – you have access to the entire amount that is in the line of credit. This can be helpful if you need to cover unexpected expenses in retirement or want to travel more.
- A reverse mortgage can help you to maintain your current standard of living by providing you with a regular stream of income.
- It can help provide seniors the opportunity to work less if they so choose since some of their financial needs are now being met by a reverse mortgage line of credit.
- Finally, a reverse mortgage may help you delay taking Social Security benefits. This is because the money that you receive from a reverse mortgage can be used as income during retirement, which reduces the amount of benefits that you are eligible for.
Criteria to Get Approved for a Reverse Mortgage
You must meet certain criteria to get approved for a reverse mortgage. The main requirements are that
- You must own your home outright or have a very low mortgage balance
- You must be at least 62 years of age
- You will also to undergo a credit check
- You must provide proof of income and assets
- You must live in the home as your primary residence
The Bay Area is a great place to retire and there are many reverse mortgage brokers who can help you through the process. If you meet the criteria and are interested in learning more, contact a Bay Area reverse mortgage broker today!
Reverse Mortgage for Retirement Planning: The Bottom Line
For some retirees, a reverse mortgage may offer an opportunity for inflation protection and financial freedom in retirement. If you meet the criteria and want to get started on your journey towards early retirement, contact a Bay Area reverse mortgage broker today.
The Mortgage Genie Works Reverse Mortgage Magic
If you have other questions you can talk to an expert by calling Karen Douglas at the Mortgage Genie. She’s happy to help you make the best decision for your situation. Contact Karen at (925) 648-0981. You can also view her client testimonials by clicking here.