Today’s Reverse Mortgage – A Very Important Retirement Component

Have you recently reviewed your retirement strategy?

With constant changes in the financial markets, economic impact and living costs and expenses continuing to rise, many of us fail to check on our retirement strategy as often as we should. Some of us have even put off the retirement strategy conversation and task in hopes that we will get to it “tomorrow”!

Did you know that Financial Advisors report that the most often overlooked asset in a retirement strategy is addressing the equity you have built up in your home.

This equity can be used for a wide variety of needs including paying off existing mortgage debt, a source for property taxes and hazard insurance, that trip you have long thought about, long term care, assisting children and family or creating a “rainy” day source for life’s ups and downs in the future.

One of the best ways to tap into this equity in a very safe, secure and flexible manner is by accessing the many features and benefits of a government-insured Home Equity Conversion Mortgage (HECM) also more commonly known as a reverse mortgage loan. …….

But I don’t need another mortgage loan!

Today’s reverse mortgage is a powerful tool loaded with program features and benefits that allows for you to achieve “The Right Fit Mortgage” based upon your particular situation and needs.

Yes, a reverse mortgage is a mortgage, however, today’s reverse mortgage is designed to help homeowners aged 62 or older maintain their quality of life in retirement by allowing the conversion of home equity into tax-free cash, as reverse mortgage loan proceeds advances are generally not considered taxable income (this is not tax advice and consulting with a tax advisor is strongly encouraged).

A reverse mortgage is a non-recourse loan that releases home equity and converts it into accessible tax-free funds. There are no restrictions on the use of proceeds, the Borrower(s) remain solely on title and no monthly mortgage payment is required for as long as at least one borrower resides and occupies the property as their primary residence. Your loan balance and accrued interest will become due upon a maturity or default event such as no longer living in the home as your principal residence, failing to pay your hazard insurance or property taxes, or failing to maintain your property.

For those homeowners who need to immediately draw upon the equity in their home to stabilize their retirement plan, a reverse mortgage even includes different forms of proceeds distribution.

The Moneyhouse “Right Fit” reverse mortgage is easy to understand and apply for, fully assisted by a knowledgeable and professional dedicated staff of bi-lingual specialists and ready to plug into your retirement plan for use today, tomorrow or into the future.

Do any of these trends in the use of Reverse Mortgages relate to your needs?

  • Paying off an existing mortgage and freeing up monthly cash flow
  • Improving quality of life during retirement
  • Increasing confidence in knowing you have a “rainy day” fund to tap into for the future
  • Reducing financial risks of a medical crisis
  • Funding for medical treatment and/or LTC insurance
  • Funding a qualified life insurance product which may give the senior better control over their estate and assure the legacy they leave retains its value
  • Reducing the taxable portion of your estate through gift giving
  • Hedging against portfolio downturns

Contact us today if you are a homeowner in need of more information on a reverse mortgage or if you are a financial planner requiring information for your customer.