"A Reverse Mortgage isn’t for everyone, but for those who can benefit from it, it’s life changing."
- Bryan Wild
What are the Pros & Cons to a Reverse Mortgage?
- Pro- you are able to live in your home for the rest of your life.
- Pro- quality of retirement improves.
- Pro- able to retire earlier.
- Pro- you don’t have a mortgage payment.
- Pro- able to tax free create income.
- Pro- won’t affect your social benefits.
- Pro- frees up income for other living expenses.
- Pro- able to leave home to your heirs.
- Pro- FHA loan.
- Pro- able to tax free create income.
- Pro- Has fixed rates or Adj. Line of credit.
- Pro- Able to maximize your financial portfolio.
- Con- Your balance of the loan goes up.
- Con- Won’t have as much equity to give to heirs.
- Con- FHA Mortgage Insurance can be expensive.
Reverse Mortgage
A Reverse Mortgage is a wonderful retirement tool. Often this is the last tool needed for a stress free retirement!
A reverse mortgage is for anyone who is retired or is about to retire, who doesn’t have the retirement income or assets to retire AND accomplish everything on their bucket list.
A Reverse Mortgage is a retirement tool designed to help keep seniors in their homes for the rest of their lives. The new Reverse Mortgages are not the same reverse mortgages you’ve heard about in the past. There have been dramatic changes over the past decade.
A Reverse Mortgage is the most flexible loan in the industry. It can be used on your current home or to buy a new home. They have fixed rate options or lines of credit options. With either loan program, you can pay off your current loan; eliminating your mortgage payment. Imagine, not having a mortgage payment. Imagine what you could now do with that money. How would that effect your monthly budget on a fixed, retirement income? Often times, this is the final tool needed to insure that you can live comfortably.
A majority of people over 62 would have enough income to retire, if they didn’t have a mortgage payment. Think about it; That $1,000 to $2,000 that you are spending on a mortgage, can now be spent in other areas. That’s a $2,000 to $4,000 swing in your monthly budget! In some cases, it’s even more. Ask yourself how much your quality of life will increase. Peace of mind.
Most retirees can live off their social security and pensions if they didn’t have a mortgage payment. Even without a large savings….
Think about all your goals you would like to accomplish with a reverse mortgage.... and give me a call at 800-361-9357. I would be more than happy to help educate you on how you can accomplish your goals.
Reverse Mortgage - Reverse Mortgage (known as a HECM- Home Equity Conversion Mortgage) is a FHA (government insured) loan. A Reverse Mortgage is a loan that allows the senior who lives in the home and qualifies to access a portion of their equity without being required to make a monthly mortgage payment for as long as they live in the house and keep their property taxes and homeowners insurance current.
- Eliminate mortgage payment
- Create income for a fixed monthly budget
- Tax free income
- Will not affect benefits
- Still own your home
- Government Loan – FHA
- Relaxed qualifying guidelines
Reverse Mortgage proceeds are tax free, not considered income and generally do not affect any benefits. Cash out from a Reverse Mortgage is not considered income, because the homeowner is paying interest on the loan. However, every financial situation is different and in some cases, cash out from a Reverse Mortgage can affect Government Benefits, not because of income, but rather balances in bank accounts. Sierra Reverse Mortgage always encourages a consult with a financial advisor.
Q&A