IS A REVERSE MORTGAGE RIGHT FOR YOU?

You’ve probably seen the commercials and heard the radio ads about reverse mortgages. You might even be considering one. Is a reverse mortgage right for you? It’s not an easy answer. Reverse mortgages are not for everyone.

What is a reverse mortgage? A reverse mortgage is a specific kind of home loan for homeowners who are 62 years of age or older. It requires no monthly mortgage payments. Borrowers are still responsible for property taxes and homeowner’s insurance. A reverse mortgage is a way for homeowners to convert part of the equity in their homes into cash.

There is a healthy skepticism about reverse mortgages, and that’s not necessarily bad, because people should exercise caution when utilizing debt. But reverse mortgages can improve retirement spending outcomes in a sensible way.

If you’re considering a reverse you’ll want to do your due diligence. This article from Forbes about reverse mortgages is a really great place to start. Talking with your financial advisor is also recommended.

According to this Forbes article, there are five ways a reverse mortgage can help your retirement:

1. Reverse Mortgages can help mitigate the risk of selling at inopportune times.
2. Bridge income from delaying social security benefits.
3. Use to fund to pay taxes on Roth IRA conversions.
4. Can possibly provide larger inheritance for heirs.
5. Emergency fund for unexpected needs.

Click here to read the full article.

A reverse mortgage isn’t for everyone talk to your financial advisor to find the best way to manage your assets.