Those with fixed resources tend to overlook the possibility of tapping the equity of their home, and with the home equity that seniors can access, a reverse mortgage product must be taken into account when developing a retirement funding plan.
Although a reverse mortgage is commonly referred to as a last resort loan for seniors who’ve got no other alternatives when under financial stress, they could serve as a part of a comprehensive retirement plan for retirees to think about and for financial consultants to explore.
Although seniors have different situations and needs, a reverse mortgage loan offers an annuity type payment or to get rid of a current mortgage, and they both help boost household cash flow. The extra income could be used for in-home care, pay for expenses, and other long term needs. A reverse mortgage can also have a retirement income that is kept at a level wherein their assets aren’t depleted.
Is A Reverse Mortgage A Good Investment?
A reverse mortgage loan are also a great option for investors who are looking to stay away from sequence of returns risk. Even though reverse mortgages are ideal for seniors, that doesn’t mean they’re ideal for everybody. There different factors that need to be considered before making a decision.
One important consideration includes how long the borrower intends to stay in their home. Although several retirees are considering aging in place, 1 out of 3 baby boomers say they plan to move at a certain point in their retirement, while others may take into account renting instead of owning or move to an assisted living. For scenarios such as these, shorter term funding requirements might be met more effectively with conventional financing like Home Equity Lines of Credits (HELOCs), because of the cost of obtaining a reverse mortgage.
For seniors who are thinking of staying in their houses, however, the viability of a reverse mortgage Myrtle Beach significantly increases.
The insurance cost amortized throughout a twenty to thirty year period could be a reasonable value proposition when it comes to taking into account not just the advantages, but others, like the chance to have a line of credit that rises and compounds as time goes by, regardless of what happens to the property value.
Since many of the American baby boomer population is comprised of homeowners, other factors such as all time highs in the housing prices and levels of home equity would let seniors to consider incorporating a reverse mortgage into the retirement planning.
Call Reverse Mortgage Specialist if you want to know if you are a suitable candidate for this type of loan.
Reverse Mortgage Specialist
1293 Professional Drive, Suite 204
Myrtle Beach, SC 29577