You probably know how hard it can be to live on a fixed income — especially if you’re retired.
If you are over 62 and own your home, however, you’re in luck.
Being eligible for a reverse mortgage allows you to cash out your home’s equity. The catch is that your home needs to be your primary residence.
Here are 3 smart moves to make using the equity of your home once you begin receiving payments from your reverse mortgage lender in 2022:
1. Supplement income
With an additional monthly income, you can increase your retirement dollars.
Let’s say your fixed income cannot cover all your expenses. A reverse mortgage can provide you with sufficient funds to get your retirement income to a comfortable level without sacrificing your lifestyle.
Smart retirees are leveraging their home’s equity with a reverse mortgage. Money recommends Finance of America. They’ve extended over $65 billion in loans to date, offer a wide variety of mortgage products, and require no origination fees on reverse mortgages.
The company asks you to fill out a short form that requests some personal details (name, email, phone, address) and some information about your home (current mortgage and home value). Don’t worry, you can estimate both of these.
After completion, a licensed representative will contact you later today for a no pressure call. Simply click here to get started.
2. Pay off debt
If you have enough home equity, a reverse mortgage can help you take care of outstanding debt.
This is particularly useful for large, high-interest balances you’re not able to pay off in the short term. By eliminating these debts, you may relieve some pressure from your financial obligations.
Furthermore, you can settle up any unpaid medical bills to avoid a direct impact on your credit.
3. Remodel your home
As you’re nearing retirement, you may want to make some adjustments to your home to better fit your new lifestyle.
So, whether you want to renovate some areas of your home or simply make some slight improvements, a reverse mortgage can afford you the opportunity to make it happen now.