Congratulations on your retirement!
Although work responsibilities may now be a thing of the past, your living expenses are not. They’ll continue to climb. Many retirees are admittedly nervous about what lies ahead. While they’re looking forward to pursuing their own interests, spending time with their families and traveling, they’re also worried about if they’ll have enough money and if they’ll remain healthy. Now is a very good time to begin brainstorming about ways to reduce monthly expenses.
The upside of the reverse mortgage program is that it can help reduce monthly expenses
- For those with a preexisting mortgage: Principal and interest payments will now become optional with this program.
- For those without a preexisting mortgage: More funds will become available to use according to your needs.
Expenses and interest rates can accumulate and become overwhelming
Monthly payments can become overwhelming for homeowners on a fixed income--auto loans, installment loans, credit cards and medical expenses. Let’s not forget the interest on these payments that can range from 3-30%!
A reverse mortgage is an excellent way to consolidate higher-rate debts. Repayment options are much more flexible with a reverse mortgage, considering that the only mandatory payment obligations are property taxes and homeowners insurance.
It is logical to assume that your lifestyle may change once you are no longer working, but it doesn’t have to. If desired, you can use a reverse mortgage to supplement your current income. This can ease the transition from working full-time to fully enjoying retirement.
As you can see, there are several ways to leverage the reverse mortgage program to help enhance your retirement.