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This story is sponsored by FSI Mortgage. Learn more about FSI Mortgage.
Approximately 15 percent of Americans are 65 or older, according to the U.S. Census Bureau, and many of them don’t have sufficient income for retirement.
In fact, the U.S. Government Accountability Office reported, “Many retirees and workers approaching retirement have limited financial resources. About half of households, age 55 and older, have no retirement savings (such as in a 401(k) plan or an IRA).”
The statistics become even more alarming if you are part of them because you know better than anyone, when age increases, expenses don’t decrease accordingly. The GAO also stated, “Social Security provides most of the income for about half of households age 65 and older.”
If Social Security isn’t sufficient and your retirement isn’t filling the void, what other options are there? A reverse mortgage may help you live more comfortably during your golden years.
What is a reverse mortgage?
Reverse mortgages are specifically designed and accessible only to homeowners age 62 and older. According to FSI Mortgage, “A reverse mortgage provides additional cash for homeowners... either as a line of credit, monthly income payment, or as a lump sum. The amount homeowners receive is based on their age and the value of the home.”
“It is a special kind of loan for seniors that allows them to borrow against their home without making a house payment for as long as they own and live in the home. The homeowner is responsible for their own property taxes, homeowners insurance and property maintenance.”
Does a reverse mortgage make sense for me?
Any time you make big financial decisions, it’s smart to talk to people you trust and research available options. A reverse mortgage isn’t right for everyone but is a great fit for many who are approaching retirement or have arrived.
Consider these simple questions to see if you may benefit:
- Are you on a fixed income, and do you need more money for retirement?
- Are you planning on living in your home for the long term?
If the answer to these questions is yes, you may want to see if you qualify, and talk to someone you know who has a reverse mortgage. Do I qualify for a reverse mortgage?
The best way to know if you qualify is to talk to a professional mortgage lender, who can assist you based on your circumstances. Aside from a personal consultation, if you answered yes to the questions above, meet the legal age requirements and have equity in your home, it’s likely you’d be a good candidate.
Living comfortably during your golden years is something you’ve dreamt about your entire life. Now is the time to educate yourself on the different options that may supplement your income and give you the retirement you want.