CHANGING COURSE, STAYING ON TARGET
With your wife’s retirement less than half a year away (she will be 65), you’ve stuck with your plan to have your home totally paid for by the time of your own retirement, scheduled for the end of next year. So far, despite the recent rise in everyday costs of living, you’ve persisted making “oversized” payments, because, without that extra effort, the mortgage would not be retired until the end of 2028.
Your home itself has been kept in excellent shape; because it is a roomy, ranch style house with no stairs to navigate, you believe the property will remain manageable even as you age. Meanwhile, seeing significant fluctuations in the value of your retirement and other investment accounts, you’ve had to keep “encouraging” each other to stay the course. At least so far, you’ve agreed that the idea of retiring mortgage-free is appealing.
Consider a different way to “stay on target”, yet doing a “course correction”, by replacing the “forward” mortgage on your home with a reverse mortgage. Up until the time of your own retirement, although there would be no obligation to make monthly mortgage payments* at all, you could continue making payments. The big difference – rather than just retiring your debt, you would be converting your housing wealth into a “reserve fund” that would function as a line of credit for future tax-free** withdrawals.
You haven’t mentioned whether your plan was for either of you to apply for social security benefits immediately following retirement. An additional benefit of a reverse mortgage might be that it could allow you to defer social security payments for a number of years, using tax-free** withdrawals to supplement retirement account draws.
You’ve been steadfast in your course to bolster your housing wealth. A reverse mortgage might allow you to “stay on target”, even as you change course in your retirement planning.
https://mutualreverse.com/david-garrison
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).
*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. **Please consult a tax specialist. 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: www.nmlsconsumeraccess.org
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