“The
reverse-mortgage option should be viewed as a method for responsible retirees
to create liquidity from another wise illiquid asset, which in turn can create
new options that potentially support a more efficient retirement income strategy,
such as more spending or more legacy.” - Wade Pfau
If you plan to stay in your home for your retirement, a HECM
(home equity conversion mortgage) or as they are commonly known, a reverse
mortgage is a highly recommended and researched solution.
Wade Pfau, featured writer for The Wall Street Journal, wrote in his article, “The New Case for
Reverse Mortgages”, about two reasons smart seniors should take out a HECM loan
early in their retirement journey.
First, establishing a line of credit through a
reverse-mortgage provides access to immediate money that retirees can use to
supplement their retirement income instantly.
Did you know that a HECM line of credit account grows along with the
interest rate of the loan? It’s true. Typically, this interest rate is much
higher than a savings account so your money grows bigger, faster. This is an advantage to a more traditional
approach to meeting unplanned financial needs which consists of tapping into a
401K account or an investment portfolio; both of which can have tax
consequences.
Seniors typically find they need more money than they
planned for due to unexpected expenses such as medical bills including
prescription costs, credit card debt and cost of living increases such as
property taxes and insurance. Proceeds
from a HECM can be used to pay for all of these expenses and more.
Most homeowners have never heard that their home’s built in
equity can be utilized in order to supplement retirement savings. A reverse mortgage is one of the safest, most
regulated home loans available to consumers today.
If you want to read about the second reason smart seniors
take out a reverse mortgage, you can read Wade Pfau’s entire article by
clicking HERE. If you’re not familiar with the features of a reverse mortgage,
David Viox, Vandyk Mortgage’s HECM
advisor would be happy to meet with you personally and teach you about this
innovative, flexible, FHA mortgage.
Do you or someone you know plan to retire early? Reverse
mortgages are a great financial tool to use to sustain a long retirement with
relatively low risk to the borrower since it is a non-recourse loan. Call David
now at 513-429-2122. Or go to our website
to learn more FREE at www.MyReverseMortgageProfessional.com
1 comment:
Many of Americans thankful to the Reverse Mortgage Program because of this they can spend their cash payments as they want.This helps them as retirement, medicare etc.
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