Old habits die hard – and that’s evident when it comes to keeping a New Year’s resolution. In 2007, British psychologist Richard Wiseman surveyed more than 3,000 people and found that 88% of all resolutions ended in failure. A 2009 article in the Wall Street Journal blames it on the brain, while others may blame it on time or, even more so, money. If money is keeping you from keeping your New Year’s resolution, we may be able to help.
A reverse mortgage may help you save money by completely paying off your existing mortgage and allowing you to use the rest of the tax-free** money however you please. While you are still responsible for paying taxes, insurance, and home maintenance costs, you are not required to make any monthly mortgage payment.* This leaves the money you would normally spend each month on a mortgage to be spent however you want to.
We’ve scoured the internet to find the most popular New Year’s resolutions, drew from our own resolutions, and remembered the resolutions of our relatives and friends to compile a list of New Year’s resolutions. Then, we broke it down to those pledges that a reverse mortgage may help you keep in 2015.
Travel – Use your proceeds to buy plane tickets or fund your whole trip. If you’re wondering where to go or how to get started, take a look at some of our past blog posts or view our travel board on Pinterest.
Pay off debt – According to research conducted by TD Bank and posted in Reverse Mortgage Daily, 29% of borrowers use their reverse mortgage to consolidate debt. With that debt being paid off, it frees up money to be used for other things.
Exercise more – There are a number of classes you can attend or gyms you can join. Use the money you’re saving by not paying a mortgage to get a personal trainer or to purchase some exercise equipment.
Manage stress – Finances are a big stressor, but a reverse mortgage may help you pay off debts and live a more financially secure retirement. If you choose to have your proceeds put into a line of credit, you’ll feel more relaxed knowing you have money there when you need it.
Move into a new home – Have you heard of a reverse mortgage for purchase? This type of reverse mortgage allows you to buy a house without having to make a single mortgage payment for as long as you live in the new home.* Keep in mind, you’ll still be responsible for paying taxes, insurance, and home maintenance costs.
Volunteer – By removing financial burden, you’re free to enjoy more stuff you like. Now that you don’t have to worry about getting paid, provide a service that’s free. You’ll get paid in the warm fuzzies that come from helping people.
Learn something new – If you’ve always dreamed of going back to school, why not use your proceeds to help pay your tuition or textbooks? (add something in here about some schools allowing seniors to take classes for free, but the books still need to be purchased)
Spend more time with family – If you have out-of-state family, use your reverse mortgage to fund a trip to visit them. If you want to be with family for longer than a few days or a couple of months, find out how a reverse for purchase can help you move closer to those loved ones.
Improve quality of retirement – A successful retirement is just a phone call away. If you’re interested in learning more about reverse mortgages, pick up the phone and dial our number. Our licensed experts will be happy to discuss how a reverse mortgage may help you keep your New Year’s resolution or simply enjoy a better retirement.
*Homeowner is still responsible for taxes, insurance and property maintenance.
**Please consult with your financial advisor.