“The most important time to have cash available to you is when you need it,” said the late Senator Fred Thompson. “And more people are using a reverse mortgage line of credit for just that—a line of credit that makes cash available for life’s unexpected turns, or just additional security that grows until you choose to use it.”
Many of the Greatest Generation faced retirement debt free for the most part. Burning their mortgage document prior to retirement was a major goal. Baby Boomers are carrying their mortgages into their Golden Years, and it can become quite a burden on a fixed income, especially if one spouse passes away and their retirement income stops. This could force the remaining spouse out of the home.
Sometimes a problem arises when the home needs a new roof and there is not enough money on a fixed income to cover the cost.
One of the dangers of retiring with mortgage debt is that the economy and markets may “turn bad,” says Ken Moraif, senior adviser at Dallas-based Money Matters. “The money you thought would be there to service your mortgage is not there,” he says. “Now what? I’m sure the bank will not say, ‘I will let you live there for free.’”
A reverse mortgage may be the answer. A couple who obtains a reverse mortgage will be free of a mortgage payment for the rest of their lives as long as they live in their home, and should one of them pass away, the surviving spouse will not be forced to leave the home. This is a great comfort as couples plan for the future.
Contact us at Silver Leaf Mortgage to discuss your possibilities.