Reverse Mortgages: Enhance Retirement Revenue

The reverse mortgage can be an important lifeline for millions of seniors in the U.S. looking for an additional retirement revenue stream.

Studies show even households with middle-class earnings are struggling to save for retirement. Nearly 50% of people say they don’t think they are saving enough to provide for a proper retirement.

At the same time, statistics show that many people enter retirement with a highly appreciated asset – their home! Converting some of that equity into cash with a reverse mortgage can help maintain the lifestyle to which they’ve become accustomed.

The federally-insured Home Equity Conversion Mortgage, or HECM, allows qualified homeowners to borrow against their equity without having to sell the home, give up title or take on a monthly mortgage payment.

There are no restrictions on how the funds may be used, and many seniors opt to pay off unexpected medical bills or renovate their home so they can age in place.

Some people fear that the bank could foreclose if the value of the home goes below the loan balance, but that’s not the case. That’s when the federal insurance kicks in. The borrower can live the rest of their lives in their home – provided they continue to use it as their primary residence, pay property taxes and maintain the home according to FHA health and safety standards.

Led by the massive Baby Boom generation, more and more people are living longer in retirement. Nearly 39 million adults will be between 65 and 74 years old by 2030. By 2035, the population aged 80 or older will double.

The reverse mortgage can be a powerful tool in maintaining an active and successful lifestyle long past the age of 62.

Email Jason today to learn more about your options.

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