If you are worried about outliving your retirement savings, you are not alone. The results of an ongoing analysis of American households by the Boston College Center for Retirement research report that half of US families will struggle financially in retirement.1
The National Retirement Risk Index is a tool that measures the percentage of working-age-households that are at risk of being unable to maintain their standard of living once they retire.2 The most recent calculation of the index shows that 50% of Americans will retire without enough assets to sustain their current standard of living.
Those who do not have adequate funds to retire may feel like they are facing an uphill battle. However, recent rising home values may be able to help alleviate some of their financial stress. The amount of home equity seniors have in their homes increased by $121 billion between Q2 and Q3 of 2017.3 For many retirees, their home is their most valuable asset, so when its value increases it has a large impact on their financial situation.
May a Reverse Mortgage Work For You?
Homeowners 62 years of age or older may want to consider tapping into their home equity as a means of supplementing their income. A reverse mortgage is a valuable tool that offers senior homeowners a way to access their home equity in the form of cash.
With a reverse mortgage, homeowners are able to eliminate their monthly mortgage payments4 and access a portion of their home equity without selling their home.5
If you are looking for a way to maintain your standard of living in retirement, a reverse mortgage may be an option for converting your home equity into the funds you need.
To learn more or request a free eligibility assessment contact a licensed loan advisor at 1 (800)976-6211 or click here to request a no obligation consultation to discuss your needs.
Important Disclosures:
1 https://reversemortgagedaily.com/2018/01/09/half-of-u-s-households-wont-have-sufficient-income-to-retire/
2 http://crr.bc.edu/special-projects/national-retirement-risk-index/
3 National Reverse Mortgages Lenders Association. Senior Home Equity Grew by $121 Billion in Third Quarter. https://www.nrmlaonline.org/about/press-releases/senior-home-equity-grew-121-billion-third-quarter
4 You must live in the home as your primary residence, continue to pay required property taxes, homeowners insurance, and maintain the home according to FHA requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
5 You will retain the title and ownership during the life of the loan, and you can sell your home at any time (at which time the loan becomes due). The loan will not become due and subject to repayment as long as you continue to meet loan obligations such as living in the home as your primary residence, maintaining the home according to the Federal Housing Administration (FHA) requirements, and paying property taxes and homeowners insurance. Failing to meet these requirements can trigger a loan default that may result in foreclosure.