Many retirees rely on Social Security and retirement savings, but sometimes those sources alone don’t fully cover rising expenses. For homeowners, another potential resource is the equity built up in their home.
A reverse mortgage allows homeowners age 62 and older to convert a portion of their home equity into cash—without having to make monthly mortgage payments. The loan is typically repaid when the homeowner moves or the home is sold.
For some retirees, this can help:
· Supplement monthly retirement income
· Eliminate an existing mortgage payment
· Cover healthcare or unexpected expenses
· Remain in their home long-term (“aging in place”)
Reverse mortgages aren’t right for everyone. Homeowners must continue paying property taxes, insurance, and home maintenance, and the loan balance is repaid when the home is eventually sold. It may also reduce the home equity left to heirs.
However, when used thoughtfully, a reverse mortgage can be a strategic tool to improve cash flow and extend retirement savings.
If you’re curious whether a reverse mortgage could fit into your retirement plan, it’s important to review both the benefits and the considerations with a knowledgeable professional.
Have a question about reverse mortgages or using home equity in retirement?
You’re welcome to call me. I’m always happy to answer questions and help you understand your options—no obligation.
Tina Steele, CRMP
Certified Reverse Mortgage Professional
17+ Years Experience
📞 520-861-2821
