As you near retirement, you may be looking more closely at your financial statements to realizing that supplementing your retirement income may be a good idea. What you may not realize is that as a senior homeowner you may have the means to do it right now. After all, you have worked tirelessly for the last thirty years paying a monthly mortgage to build equity in a beautiful home you call your own. And now all those years of hard work and all the equity you have saved may be enjoyed using a financial product you may not have known about before: a reverse mortgage.
A reverse mortgage is a loan product that allows senior homeowners like you to access some of the saved equity in their home while still living there, as long as all loan terms are met. The basic facts about reverse mortgages are that you must be age 62 years or older to qualify, you must own your home, and the home must be your primary residence. But to truly understand a reverse mortgage is to recognize the advantages it may provide, and how it can make your retirement more comfortable.
On average, homeowners spend about 30% of their monthly income on living expenses. Perhaps your current mortgage payment is taking this amount or more from your monthly income. Paying off your existing mortgage, which is required when completing a reverse mortgage loan, means your monthly mortgage payments will be eliminated, and the funds that usually went to paying that expense will then be free for you to use for other retirement expenses. Monthly payments are contingent on maintaining home as principal residence, paying all property taxes, and homeowner’s insurance, and otherwise complying with loan terms. In addition, for seniors facing the threat of losing their home to foreclosure, paying off the current mortgage means they may have a way to retain their home.
Like many senior homeowners, you may hold great sentimental value in your home. You might have raised your children there, or already invested in designing it to your liking. It should come as no surprise that 81% of seniors would prefer to age in their home and hire in-home services if need be, rather than moving to an assisted living community. With the funds a reverse mortgage may provide, aging in place may be possible for you.
As you move into retirement age, there is one thing that you should never compromise: your health. Ideally, you should never feel hesitation in going forward with a procedure that can treat an ailment, never have to question purchasing medicine that reduces your pain, and never forego a medical device that improves your quality of life. And with a reverse mortgage loan, you may choose to put funds toward making your health a priority.
For many people, credit card bills and other financial obligations with high interest rates traps them in a seemingly endless cycle of payments. Credit card bills can feel draining and with reverse mortgage funds, you may choose to pay off your credit card bills to eliminate the monthly minimums and avoid paying high interest charges.
Going through the reverse mortgage process can be a very personal experience, and you deserve dedicated assistance from your reverse mortgage professional. When you begin the process with American Advisors Group, you are assigned to one person who will be your primary resource and contact throughout the entire process, from beginning to end. Your American Advisors Group reverse mortgage professional will know the ins and outs of your loan and help you complete your paperwork. The knowledge and expertise they possess, and the assistance they will provide is invaluable as you go through this process.
For many senior homeowners already enjoying these advantages, reverse mortgage loans have meant financial freedom and an enjoyable retirement. Now, it’s time to find out for yourself: speak with a reverse mortgage professional, who will explain reverse mortgages and all the ways they could benefit you. By analyzing your situation, you may soon understand whether or not a reverse mortgage is right for you.