Skip to content

#176: Using a reverse mortgage to defer taking early social security benefits


With your relationship ending, you find yourself faced with some daunting financial realities. While you maintained sole ownership of your home (originally purchased together with your now-deceased first wife), it was helpful to have two incomes supporting the ongoing upkeep and maintenance costs. Your soon-to-be ex “roommate” is still working’ you, downsized months earlier from your full time position, have been supplementing the severance pay with a series of temporary work assignments. Your home, fortunately, is fully paid for, but there are some significant looming upkeep costs, including roof repair and a new heating system.Having recently turned 64, you had hoped to continue to defer claiming Social Security benefits for another three years; that may no longer be possible. Meanwhile, both high interest rates and your lack of full time employment render a mortgage refinance impractical.

Consider tapping the equity in your home through a reverse mortgage. While you’ll still need to maintain the home, paying real estate taxes, and insurance, you’ll be able to make tax free withdrawals to fund the needed repair projects. Should you land full time employment, you can choose to make loan repayments.  Any unused portion of your “housing wealth” will be credited with interest at the same rate as that being charged on the loan. The main benefit would be that, by using your own housing wealth, you might be able to cover living costs without “turning on” social security payments before “normal retirement age”.

Turning to your own housing wealth might make financial realities less “daunting”.

Readers, 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).

Please consult a tax advisor. 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. David Garrison, NMLS ID 1595194. Mutual of Omaha Mortgage, Inc. dba Mutual of Omaha Reverse Mortgage, NMLS ID 1025894. 3131 Camino Del Rio N 1100, San Diego, CA 92108. Indiana-DFI Mortgage Lending License 43321. Michigan 1st Mortgage Broker/Lender/Servicer Registrant FR0022702. These materials are not from HUD or FHA and the document was not approved by HUD, FHA or any Government Agency. Subject to credit approval. For licensing information, go to: Equal Housing Lender