The reverse mortgage program provides many benefits to those who choose the program. But when does the reverse mortgage make the most sense to do? While each person’s situation is different, a reverse mortgage can be beneficial for many different situations. Here some different situations where a reverse mortgage has made a difference in the person’s life.
For someone looking to eliminate their mortgage – For those of you who have a mortgage on your home a reverse mortgage can eliminate that monthly mortgage payment*. Eliminating that monthly mortgage payment can give you the financial flexibility you want. If there is any remaining equity from paying off your mortgage you receive the rest in tax-free money**.
For someone looking to do more – If you don’t have a mortgage on your home you can still receive a reverse mortgage. You just won’t have the obligation of paying off a mortgage. You can use that tax-free money for anything. You can use the equity to travel, go out to eat more or just save the proceeds for a rainy day.
For someone looking to have some money on hand – This week’s Tune In Tuesday video featured real One Reverse Mortgage clients Armand and Stephanie. They received their reverse mortgage to be able to have peace of mind of having the ability to easily access money at a moment’s notice. With a reverse mortgage they have the ability to access the proceeds from their reverse mortgage to use for anything they need it for.
For someone looking to supplement their retirement fund or Social Security – When the Great Recession happened many soon-to-be-retired seniors found their retirement fund take a hit. While the market is on the road to recovery, make portfolios have yet to fully recover. With a reverse mortgage you can use those proceeds while your portfolio makes a recovery. And for those looking to delay Social Security you can supplement it with a reverse mortgage***.
For someone who wants financial freedom – For many seniors their monthly mortgage payment is their largest bill. Being on a fixed income can make it difficult to make ends meet after a while. With a reverse mortgage that monthly mortgage can be eliminated giving you the financial freedom you are looking for. Think about what it would be like not having to make a monthly mortgage payment? Think of what you could be doing with that money each month?
So really there is no real answer to when a reverse mortgage makes the most sense. It can be a helpful financial tool at any time. There are three different loan options available all in which you the ability to leave your home to your heirs.
A One Reverse Mortgage licensed expert will be able to help you determine if a reverse mortgage makes sense for your financial goals. They will be with you every step of the process. When you call you can get a free no obligation estimate of the amount you can receive from a reverse mortgage.
*Homeowner is still responsible for taxes, insurance, and property maintenance.
**Please consult with your financial advisor.
***May affect SSI or Medicaid. Please consult with your financial advisor.