Could A Reverse Mortgage Make Your Retirement More Enjoyable?
Have you seen any of those celebrity-endorsed ads for reverse mortgages on TV? Perhaps you've wondered if these are gimmicks or sound financial plans. The good news is that they are not gimmicks; in fact, most today are loans insured by the Federal Housing Administration with protections and safeguards to ensure you and your heirs aren't negatively impacted. If you are a homeowner and 62 or older, take the time to learn whether this is a viable way to fund your retirement.
Also known as home equity conversion mortgages, reverse loans are designed to make immediate cash available to those who have accumulated equity in their current residence; however, there are some conditions. For example, the homeowner should plan to remain at home for some time and must be able to afford the home's property taxes, insurance and general upkeep. The amount of the loan is based upon three variables: the age of the youngest homeowner, current interest rates and the value of the home.
Reverse mortgages offer retirees a variety of options for using the equity in their home to finance vacations, maintain active lifestyles, travel, start new projects or save up for a rainy day – all with no requirement to make a monthly mortgage payment. Once approved, the loan can be received in one lump sum, monthly payments for the rest of the life of the borrower, monthly payments for a specific number of months, given as a line of credit or handled as a combination of the above.
Because retirement usually results in less income, today's seniors are looking for alternative ways to increase their monthly cash flow. A reverse mortgage loan is designed for just that purpose.
According to Mount Pleasant resident David Heilman, founder and principal owner of Homegrown Financial, LLC, "We know that traditional retirement income sources are becoming unreliable, leaving many to future financial strain. That's why we've devoted ourselves to helping people make use of their existing home equity as a way to fund their retirement."
For homeowners who are worried about inheritance issues, heirs can still retain the home or any excess equity once you or they sell the property. Neither they nor you will ever be held responsible for anything owed above the value of the home. If you wish, you may even choose to repay the loan while you are still living. Otherwise, at the death of the last surviving spouse or upon permanently moving, you simply sell your home and pay off any remaining reverse mortgage debt.
As an experienced and recognized Certified Reverse Mortgage Professional®, Heilman maintained, "We believe everyone deserves to have financial independence and make their own decisions for as long as possible. Homegrown Financial, LLC, is committed to allowing older homeowners a way to enrich their retirement and to securely fund their lifestyle needs today and tomorrow."
With the variety of options available, you will definitely want to discuss your choices with a caring professional. Before time slips away, consider a personal, free consultation with David Heilman at Charleston's own Homegrown Financial, LLC.