For most of us, the appeal of retirement is due in great part to the freedom that it provides. The freedom to travel, re-discover a hobby, or spend time with loved ones, all while untethered from the distractions and restraints of employment.
One of the methods available to enjoy this freedom is a Home Equity Mortgage Conversion Mortgage (HECM) or reverse mortgage. The ability of those age 62 and older to turn home equity into cash, without having to give up the home, provides a flexible option for funding a wide range of retirement plans.
Peace of Mind
It’s not uncommon to use a reverse mortgage to fund a lifestyle change, upgrade a home, or even relocate entirely. However, the HECM program shouldn’t be overlooked by those whose retirement plans are more about keeping the status quo.
Even in retirement, the unexpected can happen. Having cash available to protect against unplanned expenses can provide invaluable stability. If your home has been aging along with you, there could be a hefty repair bill in your future. With the cash from a reverse mortgage, a leaky roof or broken A/C unit won’t derail your other plans.
Quality of Life
Taking advantage of retirement relies heavily on having a quality of life that contributes to, rather than detracts from, the experience. In addition to the peace of mind that a firm financial situation provides, a HECM can also come with less obvious benefits to your golden years.
World traveling may not be part of your retirement vision, but you’ll want to at least be able to get around town. A reverse mortgage might be the key to making sure you have a reliable vehicle or one that can accommodate the physical mobility challenges that can arise as we age.
The additional income could also open the door to classes or training in a skill you’ve always wanted to embrace. Regardless of your retirement plans, a financial tool that can keep you active in the community and engaged with your family and friends is worth looking into.  
If expenses like these will be out of reach or come at the cost of your planned lifestyle, consider speaking to Open Mortgage about the HECM programs available to you.

Things to know about Reverse Mortgages:

  • 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
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