Why We Did It: Seniors Explain Why They Opted for Reverse Mortgages
Reverse mortgages are on the rise once again. One industry news source reported that the number of reverse mortgages, also known as HECM for Home Equity Conversion Mortgages, jumped more than 6.6% in 2015, after declining somewhat in 2014. These financial instruments allow qualifying borrowers aged 62 or older to tap into the equity in their homes tax free, giving seniors the chance to supplement their retirement incomes without having to sell their homes. For many seniors, reverse mortgages have proven to be a Godsend.
At our LifePlanning Seminars and on our radio programs we receive many questions about reverse mortgages. Our advice is always the same: a reverse mortgage may very well be right for your situation, but there are times and circumstances when it is not. You need to sit down with a reverse mortgage professional to review all the pros and cons in order to make an informed decision.
When considering something as complex as a reverse mortgage, it’s helpful to get multiple viewpoints. That’s why we thought this article on the website of Fox Business News was of particular interest. Even though it was originally published some months ago, it provides a helpful real-life perspective on reverse mortgages from borrowers who have them.
The article describes one borrower who successfully used a reverse mortgage to help purchase a new, smaller home where he and his wife could age in place. Another borrower used the funds for remodels and upgrades that added significantly to her home equity. Both are convinced they made the right financial choice and would do it again.
As you plan for a safe and secure retirement, the financial decisions you make today will have an enormous impact on the choices you will be able to make tomorrow. That’s why we strongly urge you to get as much information as you can and put together a comprehensive plan – we call it a LifePlan – for your senior years. A LifePlan not only deals with finances but also takes other essentials into consideration: maintaining your health, choosing appropriate housing, establishing the proper legal framework, and engaging your family members in your retirement decisions.
How can you accomplish all that? It starts with a simple decision to attend one of our free LifePlanning Seminars. These are held at locations throughout the region – simply click on the Upcoming Events tab for dates and times. This engaging seminar will provide you with valuable information to get you started down the path of solid retirement planning.
Then should you desire a personal consultation, we would welcome the opportunity. And if a reverse mortgage is (or could be) part of your plan, we can refer you to a trusted professional here in our area who will help “fill in the blanks” so that you can make the choice that’s right for you.
(Originally reported at www.foxbusiness.com)