In spite of our best laid plans, the road of life sometimes has bumps that we didn’t expect. An even bigger surprise is that most of life’s bumps cost money. The good news for senior homeowners who are planning ahead is that there is a financial tool that can take a lot of the sting out of these surprises. It is called a reverse mortgage.
The reverse mortgage is a financing program that allows the homeowner to convert part of the equity in their home into readily available cash. The title to the home is retained by the homeowner and funds from the loan proceeds, which are tax free, can be paid to the homeowner in a variety of ways. Most importantly, the loan provides the homeowner with greater flexibility and control of their finances.
Increasingly, investment planners and other financial professionals are recognizing the benefits of reverse mortgages and their usage as part of an overall financial strategy. Rather than the program of last resort, reverse mortgages are being recognized as an important part of a strategic plan that considers the bumpy road the family may face as they get older. Whether or not the program is right for you, it is always wise to understand your financial options and to be prepared to make better informed financial decisions.
For a no obligation review of the program, and the features, costs and benefits that apply specifically to you, give me a call. I promise that it will be time well spent.