Before your wife’s death five years ago, the two of you had been focused on building up financial assets in preparation for retirement, and now that you’re just a few years away from bidding farewell to full time employment, you are turning your focus on helping your only son firm up his own financial future.
As an unmarried male who’s lived in several different cities, your son has never seen the need to own a home. Fortunately, after several career disappointments, he seems to have finally found, not only precisely the right position with right company (which, best of all, is located right here in Indiana), but is in a serious dating relationship, For the very first time, he’s been asking your advice about purchasing a home.
Nothing would please you more than to be able to provide him with significant financial assistance right now, but you would like to avoid the tax implications of cashing in a portion of your own retirement plan (SEP and 403b).assets. With interest rates predicted to ease a bit soon, taking out a loan against your own home appears to be a lower-cost option.
There’s an even better way to tap into the equity on your own home in order to help your son begin building build his own housing wealth. With a reverse mortgage, there will be no monthly payments needed, nor any fixed repayment date. Not only will you be able to help your son purchase a home, you’ll be able to use the reverse mortgage line of credit to fund some of your own needs, deferring the need to make taxable withdrawals from your SEP and 403b.
Using a government-insured reverse mortgage, you’ll be putting your own housing wealth to help your son begin to build his.
If you’d like to see what you might qualify for with a reverse mortgage in Indiana, or to download your Reverse Mortgage Guide Click Here (and scroll down).
Borrower must occupy home as primary residence and remain current on property taxes, homeowner’s insurance, the costs of home maintenance, and any HOA fees.