A reverse mortgage, also referred to as a home equity conversion mortgage, is a home loan for individuals in St. Louis and throughout the U.S., aged 62 or older that does not mandate monthly mortgage payments. Older borrowers typically use a reverse mortgage to gain access to the equity already in the home, deferring payment on the home until they sell, move, or pass away. Despite these benefits, though, it was not always as easy to access a reverse mortgage as it is today. For example, lump sum payments may have been challenging to obtain, thus limiting what an elderly couple could do with the funds. Thankfully, though, some changes in recent legislation now allow you to capitalize on the benefits of a reverse mortgage.
A reverse mortgage can increase the benefits of a home loan as an investment protection strategy for elderly individuals. Now individuals who make use of a reverse mortgage are eligible to take out a lump sum payment, gain access to a line of credit or receive monthly payments on an ongoing basis. This is part of the reason that a reverse mortgage is becoming increasingly popular for many older Americans who are concerned about investment protection. A reverse mortgage may be the answer to financial concerns that you have, since you are eligible for a reverse mortgage for as long as you stay inside the home.
One reason you may wish to consider using a reverse mortgage in this manner is because having a line of credit on your reverse mortgage gives you the opportunity to take money out of the house rather than your IRAs when the markets are not performing well. A reverse mortgage should not be your only planning tool for protecting your investments, but there are several different ways that home equity could factor into your existing retirement income strategy.
Making use of the advantages of a reverse mortgage can give you options and protection over the long haul. You should always consult with an individual who has experience as a financial advisor before making any kind of big changes in your existing strategies or protection tactics. A financial advisor can inform you more about how a reverse mortgage works and how it may be seen as a supplemental strategy to some of your existing plans for protecting your investments and planning ahead for retirement.
When used appropriately, a reverse mortgage can become a critical component of your overall strategy and give you some peace of mind about your own financial future as well. Do not hesitate to educate yourself about reverse mortgages but you should always consult with an investment or financial advisor before making any decisions about whether or not you will use one.
To learn more about important issues impacting seniors, contact the St. Louis reverse mortgage professionals at Senior Health Solutions, LLC. Contact us at 636-244-4415 or contact us online to schedule an appointment.