Is a Reverse Mortgage in Your Future?

You may have heard a lot of things about reverse mortgages. Reverse loans have their pros and cons, and there seems to be no end to the discussion about whether or not seniors should borrow money this way. Only you can decide if borrowing with a reverse mortgage can help you fund a comfortable retirement. Consider some of the following points when researching your options.

Retirement Planning Is Important

Whether you are 52 or 62, it’s important to have a plan in place for your golden years. Ideally, you would have begun planning for retirement early in your working life. But if you are like many Americans you may have little to no retirement savings. A recent Gallup poll found that only 29% of Americans plan to retire before age 65 and 34% plan to work past the age of 65. Many of the people who plan to work longer say it’s because of finances.

Not Enough Savings

So what should you do if you don’t have enough money saved up for retirement? It’s never too late to start putting something away in savings. But if you don’t think your retirement account will go very far, you could consider a reverse mortgage.

What Is a Reverse Mortgage?

A reverse loan could allow you to borrow against your home equity to supplement your income. The money can be used for any purpose. The older you are and the higher your home’s value, the more money you qualify to borrow. Of course if you don’t have significant home equity, you won’t qualify for a reverse loan.

Reverse loans can be an important part of a retirement plan. But these mortgages are not always the right solution to financial problems. A qualified housing counselor can discuss reverse mortgage guidelines with you and help determine if borrowing money is a smart move.

This entry was posted on Saturday, May 22nd, 2010 at 1:29 am and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.