Reverse Loan Can Help Ease You into Retirement

You may feel like you’ll never be able to stop working and retire. While you may be facing some serious financial challenges when it comes to having enough retirement income, don’t give up hope of enjoying your golden years. Depending upon your financial needs, a reverse mortgage could help you ease out of the work world.

Keep Your Job as Long as Necessary

First, don’t quit your job if you absolutely need the income. Once you leave the work force it can be tough to find another job at the same pay level or even in the same industry. Many Americans can tell horror stories of being out of work a year or two — or even longer — after being laid off or quitting a job. Even if it’s tough to go to work every day, use your time wisely so that you can put away as much retirement savings as possible.

How Can a Reverse Loan Help?

Talk with a reverse mortgage counselor to get all the facts about these loans. Although you can apply for a reverse home mortgage as young as age 62, it may make sense to wait a few years. That’s because the older you are, the more money you may qualify to receive. Reverse loans are also based upon how much your house is worth, so waiting a few years could bring improved home values in your area.

Reverse Mortgage Plus a Part-Time Job

If working full-time is becoming tougher because of health problems, commuting distance, or some other issue, ask your employer if you can cut back to part-time hours. This may not be feasible if you don’t have health insurance or enough savings in place. But a reverse mortgage could supplement your part-time income enough for this plan to work.

If you are still able to work, run the numbers on a reverse loan offer carefully before committing to retirement. It’s important to make any money you borrow stretch for as many years as possible.

This entry was posted on Tuesday, March 30th, 2010 at 8:38 pm 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.