Have you recently retired and looking for a way to increase your income? You have probably heard of a home equity conversion mortgage or what is commonly referred to as a reverse mortgage. If done the proper way, it can be a great tool for some retires, who own their home and have the equity.
Here we examine the some of the benefits of this programs for retirees. This program is designed for retirees and have grown in popularity in the recent years.
Have greater Flexibility
Financial flexibility is one of the biggest benefits with a reverse mortgage. You have built your home equity over the years, and you can tap into those reserves without relocating a home that have you come to love. Additionally, the terms can be flexible not like the common home loans you are used to. In most circumstances the loan can be structured so you will not have to make payments until you decide to sell the home.
A great source of income
Not living to your standards because you don’t have a regular source of income? It can be despairing to not have the income you need from your savings or retirement accounts. Most of the time these funds will not replenish without entering the work force again.
The great news is that a reverse more can solve that problem. You can tap into your home equity and use the funds as you see fit. If your home needs update, you need to take a vacation or have something else you would like to invest into, you can do that. Monthly income can bridge the gap to give you financial freedom when you should be enjoying it the most.
Have an emergency fund
Everyone needs an emergency fund for those life circumstances that are going to show up. If you start this line of credit, the money will be at your disposal for those exact circumstances. Particularly in the retirement ages, a line of credit can aid one in times of health problems or any of life’s costs. With reverse mortgages you can have the security knowing that you can cover those costs without having to rely on family to support you.
Contact your mortgage company to see if this is a program that you qualify for and if it is right for you.
Given your unique circumstances you will be able to determine whether this program works. Many homeowners have been able to alleviate the financial burdens with a reverse mortgage and it can work for you too.