Just four short years ago, when you both retired from full-time careers, you thought you had a foolproof plan in place for managing regular expenses and keeping up with the maintenance of your beautiful home and grounds. The plan was to postpone social security benefits for one of you, taking a very disciplined approach to withdrawals from IRA and from your investment accounts. You retired debt-free with the exception of your mortgage, which has eight years to go.
Now, like so many others, you are feeling the financial effects of the pandemic, with rising everyday costs and the two-year hit to your part-time “gig” income. While your consulting practices are being rebuilt, you’re beginning to feel more than a bit insecure about the monthly cash outflow.
It sounds as if you’ve done a good job handling your finances, but perhaps it’s time to explore the option of tapping into your housing wealth. Just as you’d ask your plumber to install a check valve in the outlet of your water heater to prevent additional heat loss when the pipes are not in use, a reverse mortgage will help stem the drain the monthly mortgage payment is putting on your finances.
The reverse mortgage proceeds might well be sufficient to pay off your existing mortgage, thus eliminating the need for a monthly payment. Even after closing costs, there could very well be a line of credit available, the unused portion of which will grow at the same rate your mortgage balance accrues interest. Most significantly, your improved monthly cash flow will help you keep up with the now higher costs of living, buying you time to build back your part time income.
Meanwhile, a reverse mortgage will help put a “check valve” on cash outflow.
Home Equity Retirement Specialist
NMLS # 1595194
Serving the State of Indiana
p (317) 644-2595 c (765) 516-0130
e [email protected]
2169 East Rutland Lane, Martinsville, IN 46151
Corporate NMLS #1025894