Retiring your home mortgage prior to your own and your wife’s retirement from your respective careers, had been, for many years, an important element in your planning. Now, five years later, after an unsuccessful foray into a part-time business venture and some unexpected home repair costs, you realize that, while you continue to be mortgage-free, you’ve allowed your credit card debt to build up to an uncomfortable level. Odious as the idea seemed at first, you’re considering borrowing once again against your home value, sure that the interest rate will be more favorable than the exorbitant charges on the cards.
While you do have some jointly owned funds and individual IRA rollover accounts, all three of these, as part of your pre-retirement planning, had been set up to generate a fixed amount of quarterly income; although the market results have been favorable, you’re reluctant to upend this carefully arranged system by using the funds to wipe out the debt, not to mention the fear of triggering increased tax bills. Meanwhile, you recall, five years ago, being pleasantly surprised at the increase in your home’s appraised value; you surmise that there has been further increase since then.
As you consider eliminating those credit card debts, substituting those with mortgage payments, you might find that tapping your home equity through a reverse (rather than a “forward”) mortgage might provide an “easier path”. With a reverse mortgage, there will be no mandatory monthly mortgage payments* (with a reverse mortgage, repayment can be deferred until the borrower moves out, sells the home, or passes away).
By “trading up” your debt and tapping into your housing wealth through reverse mortgage financing, you stand to gain relief from the pressures of credit card debt. In a way, you will have been given the opportunity to “get back on your financial feet”.
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. 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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