After I entered the job force at 18, I had money problems for quite a number of years. I earned a decent income, but I lived paycheck to paycheck and just felt like I would never get ahead financially. One day, determined to get ahead, I decided to record every purchase I made for a month to find out just where my money was going. I learned a hard lesson that day that small purchases here and there throughout the month really add up. I committed to a much smaller budget and began stashing savings away. Then, I researched the world of investing and made a few strategic ones with some of my savings. I am now doing much better financially, and I want to help others who need it, so I am starting a blog. Come back often for money management tips and tricks explained simply!
Many people know the basics of taking out a mortgage to finance the purchase of a home, but few have much information or knowledge about reverse mortgages. Reverse mortgages allow people with substantial equity in their home to take out a line of credit against the equity. These types of loans are particularly popular for older people who are planning to retire in the near future or have already retired. When used in the right way, a reverse mortgage can provide financial security, especially for people who have already retired. Some of the top benefits of a reverse mortgage include:
Enjoy Retirement Earlier
Many people are ready to retire, but the earlier Social Security benefits are taken, the lower the amount a person will receive each month. If a senior citizen owns his or her own home, he or she can take advantage of a reverse mortgage to help supplement his or her income in the years before filing for his or her social security benefits. Using this type of financial tool can help homeowners begin their golden years earlier without having to worry about receiving much lower Social Security checks each month.
Have Easy Access to Cash
For most people, their home is their most valuable asset. No matter how a person prepares for retirement, it is not uncommon for many people to lack the funds to be able to maintain their lifestyle without an influx of income. Taking out a reverse mortgage gives homeowners the opportunity to have easy access to cash when they need it most. Since most people who take out reverse mortgages either own their home outright or have a decent amount of equity, a reverse mortgage can provide an ample amount of money for people who need financial support in their older years.
Get Rid of Mortgage Debt
Reverse Mortgages are not only available for people who already own their homes. Many older people who are planning for retirement or have reached retirement age use reverse mortgages to pay off their existing mortgage loan. For most households, a mortgage payment is one of the largest expenses, so paying off the loan makes it easier for people to manage their budget and live comfortably during their retirement years. One great thing about reverse mortgages is the fact that counseling is required before you sign anything, so you can figure out if a reverse mortgage is the best option for you and your financial situation.Share
28 December 2018