“Aren’t reverse mortgages just for people in trouble financially?”
It’s a question I hear all the time and it’s one of the biggest misconceptions about reverse mortgages.
Can homeowners 62 years of age and older, who live in their primary residence and have enough equity in their home, who are financially desperate apply for a reverse mortgage? Yes.
Is this the only to apply for a reverse mortgage? No, not in the slightest.
Depends on what you want to use your reverse mortgage for.
For example, if you live on a fixed income, and have created a budget for yourself during retirement, the reverse mortgage monthly tenure payments option is perfect for you. Tenure payments, or equal monthly installments for as long as the borrower lives in the home, exist to give homeowners extra cash flow every month but they are not for everyone because the payment amount does not change. If one month you need $200 extra and another you need $1000 extra, tenure payments are not for you.
That’s the beauty of reverse mortgages, they adapt to the consumer’s needs and personal situation.
Aside from tenure payments, a reverse mortgage can also be used as a retirement planning tool, in the form of a line of credit.
The flexibility available with the line of credit option is one of the reasons it continues to be popular among homeowners. It allows the homeowner to make unscheduled withdrawals depending on their necessity while the unused portion grows monthly depending on the interest rate. This option allows the homeowner the ability to control their available funds and, if the funds aren’t needed, initially, the amount of available funds will continue to grow.
Retirement planning and saving continue to fall by the wayside even as the cautionary tales continue to come out of the wood work. It’s time to consider what you need, or will need, in the future when you retire.
Interested in a reverse mortgage program?
There are many options available to you with a reverse mortgage and plenty of ways to use it during retirement. Give PS Financial Services a call at (888) 845-6630 or email us at info@PSReverseMortgage.com. We do not pressure those who inquire, we’re just here to help.
Click here for more information about the elimination of the reverse mortgage program as we know it: