Retirement used to feel like an easy, manageable goal. You’d work for a good company, put money into social security, set aside a little more in the bank, and with some thoughtful planning you’d hit 62 and be set to enjoy your prime years.
Sadly, life doesn’t always work out the way we plan. Between economic downturns, rising healthcare costs, family emergencies and other unexpected surprises, retirement plans get shoved to the side. Then, before you know it, you’re in your 60s and not financially prepared for the next 20, 30, or more years to come.
Fortunately, there are some solutions to give people the security they need to rest easy at night. If you’re a homeowner and over 62 years of age, you can use your home to secure a more comfortable retirement while staying in your home for as long as you wish.
How is that possible? Through a reverse mortgage.
What is a reverse mortgage?
Insured by the U.S. Department of Housing and Urban Development (HUD), a HECM reverse mortgage is available to Americans over age 62 who own their home. In a reverse mortgage, the bank pays you a percentage of the value of your home. You choose how to receive the funds: in one lump sum, in monthly payments for life, as a line-of-credit or in any combination of these three options—the payout is at your discretion. You are not obligated to pay back the loan as long as you continue living in your home and remain current on obligations of the mortgage, such as property taxes and insurance.
If you are at least 62 years old and own your home with a reasonable amount of equity, you are probably eligible for a reverse mortgage. Credit rating and income are not factors in getting qualified for a reverse mortgage.
Want more info?
A wonderful resource for planning your retirement, including learning about reverse mortgages, is NewRetirement.com. Just fill out a short form and NewRetirement.com will evaluate your qualifications and deliver free information about your options. The information is presented in an easily understandable format, matching you with top reverse mortgage lenders who will provide free consultations.
NewRetirement.com also features:
- A Retirement Planning Calculator
This helps you assess your current plan, gives you information about how long your retirement funds should last, and suggests options for making the most of your retirement resources. Besides showing how to use home equity as part of a retirement plan, it also offers insights for improving your financial situation, such as supplemental Medicare insurance or speaking with a financial advisor.
- An Online Community
Here you can share stories and learn how others are planning their retirement.
Click here to see if you qualify for a reverse mortgage loan, find out how much you can potentially get, and discover which loan is best for you.