Accomplish Your New Year’s Resolutions with a Reverse Mortgage
Resolution season is here. After shaking off the indulgences of the last couple of months, many of us look to capitalize on fresh motivation to pursue a new set of goals. Or at least a second chance at completing unfinished plans from the previous year.
In any event, homeowners over the age of 62 may have a decided advantage on the path to success. A Home Equity Conversion Mortgage (HECM), a loan based on the equity in a home, could open the door to accomplishing many common New Year’s Resolutions.
Explore the World
Traveling is a near-universal aspiration. We all have places that we would enjoy visiting, given the opportunity. If your retirement budget is keeping those locales out of reach, a HECM, also known as a reverse mortgage, could offer the financial flexibility to start crossing them off your bucket list. With monthly and lump-sum payouts available, travel options aren’t limited to traditional vacations. Your current home equity could help to fund a second home in a favorite vacation spot, and provide income potential the rest of the year, or allow you to hit the open road in a new recreational vehicle.
Spend More Time with Family
If the passing of another year has you wishing you could see more of your family and friends, and geography is to blame, it might be time for a more drastic change. A HECM for Purchase can expand your choices when buying a new home and make relocating closer to the people you love a more realistic possibility.
Get Fit, Stay Fit
A healthy mind and body are essential to enjoying retirement. Consider using the proceeds from a reverse mortgage to upgrade your home to include a fitness room to put staying in shape just a few steps away. If the local gym is a better fit, you may still want to address any issues at your house, such as uneven concrete walks or second-floor master suites, that may be putting your health at risk as you age.
A conversation with your financial advisor about the pros and cons of a reverse mortgage could be worthwhile this year. You might be surprised to learn how a reverse mortgage loan can be used to protect against investment losses and sometimes provides a critical emergency fund for unexpected expenses.
Embrace a Hobby
There’s no better time than now to start doing something you love. If the cost of equipment or instruction is preventing you from diving into a new hobby, the budget boost of a HECM might make all the difference. Not only will you enjoy meeting some like-minded hobbyists, but also benefit from the mental stimulus of a new challenge.
Make the upcoming year your best yet with the lending experience of Open Mortgage. Call today to speak with a loan origination specialist, or browse our website for more information on how a reverse mortgage could help you reach your goals.
- At the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds
- Charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees
- The loan balance grows over time and interest is charged on the outstanding balance
- The borrower remains responsible for property taxes, hazard insurance, and home maintenance, and failure to pay these amounts may result in the loss of the home
- Interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment