reverse mortgage
So Terry. Im confused about reverse mortgages. Since I am elderly and interested in a little more income, can I still get one if my mortgage is paid off? Or perhaps there is another way to work with the value of my home which I intend to continue to reside in for as long as possible. Thank you
Terry Says
Read this article I wrote to explain reverse mortgages: https://www.terrysavage.com/reverse-mortgage-rules/
They are designed for seniors who want to stay in their homes. BUT there are fees to set on up, and it only works if you DO stay in your home for an number of years. So this is the time to carefully evaluate the costs of keeping your home — vs moving to a continuing care community (read this article:
https://www.terrysavage.com/continuing-care-retirement-communities/
Your home will need upkeep, you’ll need to pay property taxes, and insurance. You need to figure all of those things into your budget for the next 5-10 years. And likely those costs will continue to rise. Then when you’re 5-10 years older (and have withdrawn a lot of your home equity) you’ll be looking for another place to live (assuming you cannot handle the challenge or expenses of maintaining your home).
So do some careful planning. Maybe it’s time for just one meeting with a trusted, fee-only Fiduciary financial planner to work through the issues. Check this out: Wealthramp.com.
