YOUR REVERSE MORTGAGE NOW AND LATER
Ten years into a second marriage, and now four years into retirement, you’re grateful for the decision you made to sell each of your homes, jointly purchasing the one in which you now live. Together, you’re reaping the benefits of the saving and planning each of you had done in preparation for leaving full-time employment. Another positive is that each of you has been able to generate extra “spending money” through consulting and speaking gigs. Despite all these positives, you are fearful of proceeding with a long-held plan to take a month-long intercontinental cruise. With costs of living on the rise, you’re concerned about a discretionary expenditure of that size, but want to realize the dream while you’re both healthy enough for international travel.
You’ve been exploring the possibility of using the equity in your home by applying for a reverse mortgage (you attended a seminar on this at church). The attraction is that you would not need to either liquidate investments, possibly generating capital gains tax, or disturb either of your rollover retirement accounts. Your one concern is that neither of you wants to impose a later financial burden on your children (you each have one adult child; she has two grandchildren). You’re worried that, since you would be drawing money out, with no certainty of being able to replace it later on, the interest on the reverse mortgage loan would build up over the years, with our heirs needing to repay that loan for much more than the house itself might then be worth.
Reverse mortgages, or HECMs (home equity conversion mortgages) were created specifically to allow for retirees like yourself to tap into the equity of their homes to help supplement and enrich their finances. Neither you nor your heirs can ever be held liable for more money than the appraised value of the home at the time you vacate it. After both of you are gone, even if the amount you’ve drawn out of the reverse mortgage line of credit exceeds the value of the home, your children will be free to give back the house to the lender and walk away, obligation-free. Should they decide to keep ownership of the home, they would need to buy it back by paying only 95% of the mortgage balance!
A reverse mortgage is all about using your own assets to enhance your own retirement lifestyle.
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).
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.orgEqual Housing Lender