Jane Osmond looked at her mortgage bill statement with a range of mixed emotions. Like many retired Americans, she had achieved the American Dream: home ownership. But with that dream came years of hard work to diligently make her mortgage payment every month. And although she was very close to paying off her entire mortgage balance, she was not yet finished. She is not alone. Like many older Americans, Osmond will be carrying some of her mortgage debt into retirement.
According to recent studies, more retirees are carrying mortgage debt into retirement today compared to more than ten years ago. With housing expenses commonly being about 30% of the monthly expenses of many Americans, this added cost for housing may become somewhat of a burden. Luckily, a federally-insured loan product has proven to be a helpful financial tool, offering thousands of retirees across the nation financial security.
One way to help with your housing situation is to utilize the government-backed Home Equity Conversion Mortgage (HECM), also popularly referred to as reverse mortgages. Reverse Mortgages allow you to tap into the equity you currently have in your home without having to make monthly mortgage payments, and allow you access to an area where you may hold most of your wealth.
“With a reverse mortgage, I am able to pay off [the rest of] my mortgage, pay off my taxes, and raise my credit rating,” explains Osmond. “The entire process is very positive and I am glad my husband asked me to look into reverse mortgages before he died.”
Reverse mortgages can help retirees of all income levels. With reverse mortgages, you can do the following:
Reverse mortgages are able to help you with any challenging housing situation you may face, freeing up cash and relieving financial burdens. Call American Advisors Group at 1-888-998-3147. Speak with a Reverse Mortgage Professional, and learn about the best way a reverse mortgage can help you reach your retirement goals.
Dowell, Cassandra. “Senior Housing Situation Dire, But Reverse Mortgages Can Help.” ReverseMortgageDaily.com. Reverse Mortgage Daily. 3 Sept 2014. Web. 1 Oct 2014. http://reversemortgagedaily.com/2014/09/03/harvard-aarp-senior-housing-situation-dire-but-reverse-mortgages-can-help/