Maintaining Quality of Life in Retirement with a Reverse Mortgage

Finances play a key role in maintaining your quality of life in retirement.  As you reach retirement age you will likely research various financial options as part of your retirement plan, one option may be a reverse mortgage loan.  If you are 62 years or older, a reverse mortgage may be a viable option to supplement your retirement plan.

A flexible financial tool for retirement.

Unfortunately, many have heard that reverse mortgages are a poor choice due to the following false statements:

  • They’re expensive/unaffordable
  • The bank or government owns your home
  • You’ll lose all equity intended for heirs
  • You no longer are on the title
  • Having great credit is a requirement
  • You won’t be able to sell your home
  • Your home has to be in perfect condition
  • It is intended solely as a last resort

The false statements above could be causing some seniors to live with unnecessary financial hardship that a reverse mortgage could help alleviate. 

Listed below are a few reasons why a reverse mortgage could be considered a flexible financial tool for retirement:

  • You can eliminate monthly mortgage payments1
  • Supplement your monthly cash flow
  • Access a growing line of credit2
  • You can consolidate and/or pay off debts3
  • Pay your real estate taxes and property insurance4
  • You can plan for at home care or nursing home expenses
  • Implement home repairs or accessibility improvements4
  • Cover divorce or other legal situations
  • Pay for estate and financial planning services

Interested in learning how a reverse mortgage can help you in retirement? Call (800) 976-6211 to speak with a licensed reverse mortgage specialist for a same-day, free no obligation loan assessment.

You can also get more information from “Use Your Home to Stay at Home,” the official reverse mortgage consumer booklet approved by the U.S. Department of Housing & Urban Development. 

 Important Disclosures

1 Your current mortgage(s) and any other existing liens against the property must be paid off at or before closing. 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.

2 The reverse mortgage loan balance grows at the same rate as the available line of credit. Line of credit growth occurs and is only a benefit when a portion of the line of credit is not used. The unused line of credit grows over time and more funds become available during the life of the loan.

3 Your HECM loan will accrue interest that together with principal will have to be repaid when the loan becomes due.

4 Mandatory obligations are those fees and charges, as defined by the U.S. Department of Housing and Urban Development (HUD), incurred with the origination of the HECM loan that are paid at closing or during the first 12-month disbursement period.  This includes but is not limited to: existing liens on the property; the loan origination fee; counseling fee; upfront MIP; third-party closing costs; customary fees and charges for warranties, inspections, surveys, engineer certifications; repair set-asides; set-aside for property taxes and insurance; and delinquent federal debt.