Adults over the age of 62 are quite often still employed and may have a traditional mortgage requiring monthly payments. They are also often tasked with care or oversight of their parents or perhaps a sibling or special-needs adult child. These responsibilities make them vulnerable to both loss of employment and higher expenses which, in turn can put their housing stability and retirement at risk. My suggestion to those homeowners over the age of 62 is to consider refinancing to a Reverse Mortgage as a “financial insurance policy” against these risks.
Employees and business owners of all ages are at risk of changes in the economy, unexpected global events like COVID, or unexpected personal events such as a familial health crisis. The difference is that for those of us over 62 (whether we want to acknowledge it or not) is that it can be more difficult for us to replace our income than it is for younger workers. Someone’s income security is less about being able to keep their present job as it is the ability to replace the income.
While many people hope for a home that is paid off by the time they reach 62, the reality is that most still have a monthly mortgage payment. At age 62 and beyond, homeowners have the option of refinancing to a Reverse Mortgage, which has no monthly payment requirements. However, if a Reverse Mortgage borrower would like to make payments to lower their balance, they are able to do so. What this means is that while jobs and health are stable, the homeowner can continue paying down their mortgage debt just as they would have done with a traditional mortgage. However, because these payments are not required, they have the option of stopping them if there is a job loss, a decrease in other income or a need to rearrange finances to accommodate other priorities. Depending on their equity and the structure of their loan, they may even be able to start receiving payments from their loan to help supplement the monthly balance sheet.
Think about the freedom that can offer!
My book, “Why A Reverse Mortgage?” describes how borrowers have benefitted from a Reverse Mortgage in this way. Give me a call at 303-469-1254 for answers to your questions and a free proposal specifically for your situation.
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