Rethinking Retirement Income: How Older Homeowners May Unlock Equity With Confidence
For many older Americans, retirement planning involves taking a closer look at home equity. A reverse mortgage is one option that can make it possible for eligible homeowners to tap into their home’s equity — without having to move. Unlike a traditional mortgage, it does not require monthly mortgage payments, although borrowers must meet loan obligations, such as keeping up with property taxes, homeowners insurance and home maintenance costs.
Why home equity is getting more attention in retirement
Housing wealth has become a bigger part of the retirement conversation because many older adults have a large portion of wealth tied up in their homes, but want more flexibility in how they access it.
For the average 65-year-old American couple, home equity represents more than two-thirds of their total wealth — money that could help cover day-to-day expenses, consolidate higher-interest debt or create a buffer for unexpected needs.
Click here to get your free reverse mortgage information kit from Longbridge Financial.
Understanding your home equity options
Since most people don’t spend years studying reverse mortgages or other home equity products designed for retirees, specialized lenders can play an important role in helping older homeowners understand how these options work.
Longbridge Financial’s approach is built around home equity solutions for older Americans, including:
- Home Equity Conversion Mortgage (HECM) – Available to homeowners 62+ and the most common kind of reverse mortgage
- Platinum by Longbridge – a suite of proprietary reverse mortgages offering greater flexibility and available to homeowners *
- HELOC For Seniors®️ - a first-of-its-kind home equity line of credit (HELOC) with innovative features designed for homeowners 62+.
The company’s mortgage professionals can walk you through how every loan works, the benefits of each and what requirements and costs come with each option.
Click here to get your free reverse mortgage information kit from Longbridge Financial.
Questions to ask before tapping into your home equity
Before deciding on a home equity solution in retirement, consider a few key questions:
- What is your primary goal? Are you looking to cover ongoing expenses? Pay off an existing mortgage? Create a stand-by line of credit? The answer can help clarify which option may be the best fit for your needs.
- How long do you plan to stay in your home? Many age-tailored products are designed for homeowners who expect to stay put for the medium to long term.
- Have you compared lenders and products? Fees, interest rates, eligibility rules and product features can vary.
The bottom line
Longbridge can offer competitive rates, holds an A+ rating from the Better Business Bureau, and consistently receives “Excellent” ratings on Trustpilot. The company is committed to efficiency, focusing on smooth and streamlined processes to help customers access their funds as quickly as possible.
For homeowners looking to make their home equity work harder in retirement, a reverse mortgage or other age-tailored solution may be worth considering.
Get your quote and kit today: there’s no cost or obligation.
Disclosures:
Money Group, LLC has a business relationship with Longbridge Financial, LLC. This content is sponsored by Longbridge Financial. Trademarks, brands, logos and copyrights are the property of their respective owners.
*Available to borrowers as young as 55 in select states only. Higher minimum age requirements may apply.
Longbridge Financial Licensing/Disclosure Information:
This material has not been reviewed, approved or issued by HUD, FHA or any government agency. The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.
Charges such as an origination fee, mortgage insurance premiums, closing costs and/or servicing fees, if applicable, may be assessed and will be added to the loan balance. As long as you comply with the terms of the loan, you retain title until you sell or transfer the property, and, therefore, you are responsible for paying property taxes, insurance and maintenance. Failing to pay these amounts may cause the loan to become immediately due and/or subject the property to a tax lien, other encumbrance or foreclosure. The loan balance grows over time, and interest is added to that balance. Interest on a reverse mortgage is not deductible from your income tax until you repay all or part of the interest on the loan. Although the loan is non-recourse, at the maturity of the loan, the lender will have a claim against your property and you or your heirs may need to sell the property in order to repay the loan, or use other assets to repay the loan in order to retain the property.
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