Retirement in Reverse: Better read this if you are 62 or older and still making mortgage payments.
More than 1 million seniors have taken advantage of this “retirement secret.”
“I now have paid off my credit cards and have money in the bank and still have my home.”
- Margaret Tennant, Summerfield, NC
Americans are living longer. Home values are up. And for many senior citizens, their home is their single biggest asset, often accounting for more than 50% of their net worth. With the cost of basic necessities such as food on the rise, it’s no wonder why more and more seniors are using HECM reverse mortgages to turn their home equity into extra cash for retirement. However, there are still millions of homeowners who could benefit from this FHA-insured loan but may simply not be aware of this “retirement secret,” notes Former U.S. Senator Fred Thompson. “You know, some people have told me that reverse mortgages sound too good to be true. You get cash out of your home, no monthly payments, and you still own your home,” says Senator Thompson.
NO MONTHLY MORTGAGE PAYMENTS?* EXTRA CASH?
It’s true, no monthly mortgage payments are required with a reverse mortgage; the homeowners only have to pay for maintenance, property taxes, homeowner’s insurance and, if required, their HOA fees. In fact, reverse mortgages took hold when president Ronald Reagan signed the FHA mortgage bill into law over 25 years ago to help senior citizens remain in their homes. “They’re simply an effective way for folks 62 and older to get the cash they need to enjoy their retirement,” notes Thompson. Although today’s HECM reverse mortgages have been greatly improved to provide greater protection for homeowners, there are still a lot of misconceptions. For example, many people mistakenly believe the home must be paid off in full in order to qualify for a reverse mortgage, which is not the case. One key benefit of a reverse mortgage is that it automatically pays off your existing mortgage, which frees up cash flow, a huge blessing for those on a fixed income. Unfortunately, many homeowners who could benefit from a reverse mortgage don’t even bother to get more information due to rumors they’ve heard. That’s a shame because reverse mortgages are helping many seniors live a better life. A recent survey by American Advisors Group (AAG), the nation’s number one reverse mortgage lender, found that 96% of their clients were satisfied with their reverse mortgages. If you’re a homeowner age 62 or older, you owe it to yourself to learn more. You may be pleasantly surprised by what you discover.