Reverse Mortgages: How Can Home Equity Be Used?

Using a Reverse Mortgage to tap into your home equity could significantly improve your lifestyle and allow you to enjoy your retirement without the added stress of a having to make a monthly mortgage payment.

Accessing your home equity is a big decision. In the past, most homeowners were advised to save equity for emergencies. But recent studies published in the Journal for Financial Planning1 suggest that tapping equity earlier, and retirement funds later, might be a better strategy to help extend the life of your assets.

As long as you meet the qualifications, the proceeds you receive from a Reverse Mortgage is your money.

Setting up a credit line for future use can be a great way to protect yourself from downturns in the real estate market and ensure that the equity you have today will always be available when you need it.

You may also choose to use the funds you receive from your home equity to:

  • Pay off your debts and other bills
  • Healthcare costs
  • Living expenses
  • Any remodeling you may want to do
  • Lower your taxable income and plan for your future

No matter if you choose one of the above or a combination of ways to spend your proceeds, one thing is certain; you’ll be able to free up funds that would have normally been used to pay off your mortgage and instead you can use that cash for other expenses. Your home will remain in your name and you own it as long as you continue to live in the home and keep up with your real estate taxes, homeowner’s insurance and maintain the property.

At Longbridge Financial, we pledge to assess your financial situation to ensure that it’s a good fit for a reverse mortgage. We’ll take the time to ask questions about your goals, your home, and your finances. You can rest assured that if we ever feel like this is NOT the best option for you, WE WILL TELL YOU SO. Not all lenders will make that promise.

Questions about reverse mortgages? We’re here to help. To learn more, call (855) 523-4326 or visit longbridge-financial.com.

 

 

 

 

1https://www.onefpa.org/journal/Pages/APR16-Incorporating-Home-Equity-into-a-Retirement-Income-Strategy.aspx