Reverse mortgages are used by hundreds of thousands of older Americans, but this mortgage type doesn't often catch the limelight. There are a few reasons why. Most notably, reverse mortgages (also known as Home Equity Conversion Mortgages) simply aren't right for everyone, and in the past, they lacked the protections they now have built in. While there are a few drawbacks of this mortgage type, like less equity for your heirs, today's HECMs are a viable option for retirement success, they're highly regulated, and they can offer an excellent solution to cashflow problems in several situations.
Homeowners over the age of 62 who have approximately 50 percent home equity in a primary residence, or who have at least a 50 percent down payment when purchasing a new primary residence, could be eligible for a reverse mortgage. Unlike other mortgage types, a reverse mortgage has no credit or income requirements. They are also government-insured and do not require a home sale.
Reverse mortgages are an often-overlooked retirement funding tool. If you’re in need of greater cashflow or looking for ways to extend your retirement portfolio’s duration, here are 10 ways you can use a Home Equity Conversion Loan (AKA reverse mortgage):
Wondering if a reverse mortgage might be right for you or a family member? Contact us today to evaluate your options.
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