In one week the COVID-19 virus has shook not only the health of the entire world, but our national economy and stock market and our local economies as well. Seniors are an especially vulnerable age group to not just the virus itself, but also to the broad reaching impact on finances.
Here’s how a HECM reverse mortgage could help with different scenarios:
1.) Pay off existing conventional mortgage and/or other debt.
2.) Provide cushion for a volatile stock market that can affect retirement portfolios.
3.) Allow seniors to move out of senior living homes (as is being recommended) and fund long term care or long term care insurance.
4.) Allow seniors to move out of senior living homes and purchase a home or condo using a Reverse Mortgage for Purchase.
Regardless of how a HECM Reverse Mortgage can help, the truth is right now is the time to do it. This is because home values are high and interest rates are low, but this may change quickly. The amount available through a reverse mortgage is based off two main factors – the appraised value of the home and the age of the borrower(s).
Reverse mortgages are available to homeowners 62 and over, including married couples, with many protections in place to ensure borrowers are adequately educated before using this option, such as required third-party counseling. Reverse mortgages are gaining in popularity among retirees from all walks of life. A reverse mortgage for purchase option is available for those looking to purchase a new residence.
Sara Cornwall is a local Reverse Mortgage Advisor serving the entire state of Connecticut. Contact Sara and learn if reverse mortgage is right for you.