Reverse Loans and Early Retirement

Did you retire early and now find yourself with less of a retirement fund than you anticipated because of stock market declines? Even if you planned for retirement carefully and socked away money religiously over your working years, it may take years to rebuild a nest egg. Should you consider borrowing with a reverse home mortgage to supplement your income?

Reverse Loan Coverts Home Equity to Cash

A reverse mortgage could put a significant chunk of money in your pocket if you have enough home equity. Take the proceeds as a lump sum, a line of credit, or regular monthly payments. But keep in mind that the amount of home equity you can convert to cash is based upon your age and current mortgage rates, as well as a home appraisal.

AARP has a reverse mortgage calculator that can give you an idea of how much you might be able to borrow. You also are required to meet with a reverse mortgage counselor before applying for a loan. The counseling session is designed to inform you about reverse mortgage guidelines as well as other alternatives to borrowing money.

Reverse Mortgage or Get a Job?

If you are uncomfortable with giving up home equity to borrow a reverse loan, you may need to consider going back to work. A part-time or full-time job may give you just enough income to handle your monthly bills.

Many U.S. workers are having a tough time finding positions right now, so be prepared to job hunt for a while. Decide what your limitations are in terms of hours, commuting, or physical restrictions that may impact your ability to get a job. If your search doesn’t result in a new gig and you still want to investigate reverse mortgage loans, consider shopping for free, no obligation quotes here.

This entry was posted on Tuesday, February 16th, 2010 at 5:40 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.