What are the smartest ways to use a reverse mortgage if you are considering these lucrative home loans for older Americans?
A reverse mortgage is becoming a popular way to access your home equity and use the funds to provide an added vehicle toward retirement security. Recent studies have found that most retirees have about half of their wealth held in their home's equity as they do in other savings accounts and retirement funds.
A reverse mortgage has been lauded in recent years because it can deliver steady income many years following retirement, throughout key golden years of age 62 (when you become eligible for one) through age 70. This, in turn, can enable retirees to defer Social Security payments, allowing them to reach their maximum payout level. What's more, reverse mortgages don't rely on current market conditions to pay out, and help increase cash flow to the recipient by eradicating home loan payments.
By far, this is the most popular delivery method for reverse mortgages. It enables the elimination of the monthly payment, thus increasing cash flow and reducing overhead monthly expenses. It also results in a lump sum cash delivery that can offset unforeseen expenses and provide a financial safety net that covers anything that could suddenly arise, like unexpected medical bills.
Line Of Credit
You can also consider an HECM line of credit that is held in reserve. This gives you the option to take out funds only when you need it. For instance, it can enable you to protect savings in a bear market without having to sell your investments or deplete your portfolio. When the market recovers, returns on stocks can be used to pay down said line of credit. In addition, an unused line can grow over time, and it is not able to be frozen by the lender; provided that you adhere to the guidelines of the home loan.
There are many things to consider when getting a reverse mortgage. These are all topics that should be brought up with your financial advisor beforehand. Simple rules do apply. These include that you be the qualifying age of 62 or older; are the primary occupant of your home; have substantial home equity available; can demonstrate that you are able to maintain the home and pay property taxes and insurance.
Visit NowItCounts.com, The Destination for Americans 50+ for stories that matter to you covering financial, health, beauty, style, travel, news, lifestyle, food, entertainment and sports, and just cool stuff to know!
How to vote
Vote-by-mail ballot request deadline: Varies by state
For the Nov 3 election: States are making it easier for citizens to vote absentee by mail this year due to the coronavirus. Each state has its own rules for mail-in absentee voting. Visit your state election office website to find out if you can vote by mail.Get more informationTrack ballot status
In-person early voting dates: Varies by state
Sometimes circumstances make it hard or impossible for you to vote on Election Day. But your state may let you vote during a designated early voting period. You don't need an excuse to vote early. Visit your state election office website to find out whether they offer early voting.My Election Office
General Election: Nov 3, 2020
Polling hours on Election Day: Varies by state/localityMy Polling Place