RetirementGuy Note: Never do a reverse mortgage without speaking with qualified professionals and doing your own homework!
If your retirement income needs are greater than your income, there may be ways you haven’t considered that could cover the shortfall. Home equity, for example, is an asset you may have overlooked, but you can borrow part of that equity tax-free to enjoy a more comfortable retirement. One way seniors aged 62 and older can access their home equity is with a federally insured reverse mortgage, known as a Home Equity Conversion Mortgage or HECM.
Now may be an ideal time to integrate a HECM into a retirement income plan as home prices in many regions have reached all-time highs, and interest rates are still favorable. Seniors pay no income taxes on money they borrow and can use it in a myriad of ways — to improve monthly cash flow, cover emergencies like major home repairs or unanticipated health care costs, reduce or prevent the need to sell stocks during a market downturn, and make the dream of aging in place a reality.