Reverse Mortgage Loans As Financial Planning Tool

Financial Planning with Reverse Mortgage Loans

Reverse mortgage loans can aid in your retirement financial planning by helping to handle the unexpected and by allowing your savings and Social Security to spend more time growing. Follow the tips below for some best practices to use a reverse mortgage as a tool to finance your retirement.

• Delay Drawing from Retirement Accounts: Provided the markets are performing well, the longer your retirement accounts stay fully funded the more money you can make and the more money you can spend down the line. Reverse mortgage loans would allow you to borrow against your home (an asset most people have already paid for by retirement) to allow these other resources to continue growing. On the other hand, if markets are bad near the time you retire, a reverse mortgage can make up for any losses.
• Increase Discretionary Income: Reverse mortgage loans are unique loans in that they do not require you to make monthly payments after they have been issued to you. This has a great advantage as a financial tool because it allows you, for example, to pay off your mortgage, giving you access to more of your fixed income every month.
• Delay Social Security: The older you are when you begin drawing Social Security, the more you are eligible to receive. A reverse mortgage can help you postpone the date you begin taking Social Security. Good reverse mortgage lenders will help you weigh your options to find the best strategy for your home and financial needs.
• Grow an Un-Cancellable Line of Credit: Most loans have utilization clause, which means they can be closed if you do not use them for an extended period of time. This can make it hard to prepare for bad times with personal loans or credit cards. Reverse mortgage loans cannot be cancelled, and will grow as long as the equity in your home grows.

Contact Us for More Info About How Reverse Mortgage Loans Can Be Your Financial Tool

While there are risks associated with reverse mortgage loans, most people find them to be a valuable financial planning tool. When you know all about reverse mortgages you can make the decision to use these loans to your benefit. In California, contact us today to learn more about reverse mortgage loan requirements and to find out how a reverse mortgage can be a key tool in reaching your retirement goals.