According to this worrying article from Time Magazine, 56% of Americans have less than $10,000 saved for retirement, and almost 1 in 3 Americans have no retirement savings at all. Coupled with the increased life expectancy of most seniors, many will have to work through their retirement years just to get by. Fortunately, if you have equity in your home, Futura Mortgage can provide a tool you can use to give yourself financial stability during retirement: a reverse mortgage. Here are some of the advantages to reverse mortgages that you ought to consider before you reach retirement.
- Reverse mortgages give immediate access to cash
For seniors with a cash flow problem or even for those without enough money to travel or follow their bucket lists, reverse mortgages can give you the income necessary. You can devote more finances to pay down other bills, eliminating other payments, or simply enjoying a more comfortable lifestyle. In some cases, eligible homeowners can even eliminate their existing mortgage debt and use their remainder of their reverse mortgage as a line of credit.
- Reverse mortgages extend the life of other retirement savings
At age 62, most people will begin taking out their social security benefits. But what you might not know is the longer you wait to take out your social security, the more you’ll earn when you finally start. At the same time, 401ks get taxed just as you need to use them. Reverse mortgages can help by giving you a stream of income you can use in place of these avenues to help you get more out of them further down the line.
- The value of a reverse mortgage loan increases as time goes on
One benefit that you might not realize is that if you take use a reverse mortgage as a line of credit and don’t use it, the amount of the loan increases according to the interest rate. This means if you never have to use your reverse mortgage funds until something major comes along (like medical expenses), the amount available to you also increases. This can give many retirees a lot of peace of mind for the future.
Consider a reverse mortgage from the professional CPAs at Futura Mortgage and protect your future as you enjoy your golden years. We can help you perfectly customize your reverse mortgage to suit your needs.