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#40 Using A Reverse Mortgage to Increase Accessibility


David Garrison
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

While a number of your friends have been selling their homes, relocating themselves and their dramatically downsized possessions to retirement communities, the two of you are determined to continue making memories right here in the house you’ve owned for so much of your lives together. You’ve been watching reality TV shows about physically adapting a home for “aging in place” and are ready to think about beginning some of the indoor projects this winter, then moving in the spring to some of the heavier outdoor work

The first of your two biggest concerns involves aesthetics. While certain health conditions make both air quality and fall prevention primary goals, you both abhor what you call the “nursing home look” of grab bars and wooden ramps. Thankfully, the shows you’ve watched have demonstrated some highly pleasing, yet safety-conscious design options, including very modern interior and exterior lighting and accessibility choices.

Your second concern is financing the substantial cost of the renovations. Even spread out over a couple or even a few years, doing the job right will take quite a chunk out of your retirement assets. With the greatest portion of your savings residing in tax-advantaged accounts, your tax advisor has cautioned that large, lump-sum withdrawals (over and above the systematic payments your have arranged) can affect not only your tax bill, but even the tax you pay on Social Security benefits.

A reverse mortgage might improve “accessibility” in more than one sense of the word. Using the equity built up in your home, you arrange for a HECM Adjustable Rate Loan line of credit on a reverse mortgage. Since the FHA-insured loan requires no monthly mortgage payments and has no fixed due date, you can draw only the amounts needed to finance each stage of your aging-in-place home renovations. In fact, should the home improvements cost less than expected, your line of credit will be a welcome resource to tap for future needs.

A reverse mortgage can help “ramp up” accessibility – of both your home you’re your financial resources!