Now’s a great time for a reverse mortgage
In today’s economic climate, clients need financial solutions that make sense.
Today’s economic circumstances are taking a toll on retirees. From delaying major purchases and driving less, to cancelling or curtailing travel plans, many are sacrificing to make ends meet. Retirees need solid financial options to help ease the pressure.
The economic landscape. A survey found that three-quarters of seniors are stressed over money, and 56% say they can’t keep pace with the rising cost-of-living. Most worrisome, 19% say they defer contributions to their tax-free savings accounts and retirement savings plans.
Because lending rates are generally higher than average inflation, many households are now in a position where a significant portion of their income goes towards mortgage payments. Mortgage renewals and home equity lines of credit (HELOC) payments have also increased, with the former rising by 13.3% on a seasonally adjusted quarterly basis in 2020. As a proportion of non-mortgage debt, HELOC grew to 32% in January 2021 from 10.5% in January 2000 and accounted for nearly 44% of outstanding non-mortgage debt as of March 2021, with balances up 2.5% that same month from January 2020.
At the same time, home values have dropped. Prices fell 1.9% in June, the most significant decline since 2005. Reports suggest the average price of a home could fall 25% by 2023.
How a reverse mortgage can help retirees that are feeling the pinch two-fold: they’re facing increasing expenses and concerns that inflation is eroding retirement savings. They are also seeing a lack of good options to help themselves out of financial hardship. Instead of scrambling to adjust budgets at the expense of their quality of life during their Golden Years, there is a sound financial solution.
You can stay in your home they love for as long as you wish – continuing to benefit from eventual home price appreciation – and can even release more equity in the future if they do not take the total amount, or if their home’s value rises. There are no restrictions on how they must spend the money they receive, and they can choose to receive a cash lump sum, a series of advances, or both.
Some prefer the convenience of regularly scheduled advances, we can set this up to provide you with monthly advances. You have greater control over the flow of the funds and spreading it out lowers their interest cost and preserves their investment portfolio longer.
Call Scott Underwood at Reverse Mortgage Alabama- Birmingham or Huntsville, Alabama to find out if now is your best time for a reverse mortgage to improve your standard of living in retirement. Now’s a great time for a reverse mortgage by Mallory Hendry
*Always consult your accountant or financial advisor.
** As long as you keep your property in good maintenance, pay your property taxes and property insurance and your property is not in default. The guarantee excludes administrative expenses and interest that has accumulated after the due date.