Retirement Planning And Reverse Mortgage Loans

How Reverse Mortgages Fit into Retirement Planning

Reverse mortgages can serve as an extra form of income or a lump sum of cash to add to your assets, which is what makes them such a valuable part of retirement planning for many seniors. However, it is important to educate yourself all about reverse mortgages in order to learn the best strategies for using these loans when you retire.

Because reverse mortgages can be paid out in either lump sums or in scheduled payments over time they can contribute to retirement planning in several different ways. Your reverse mortgage eligibility and the payment plan you choose will help you determine what is the best option for your needs.

For example, lump sum payments can be used to build up your cash reserves even when you are on a fixed income. The lump sum can also be used to make urgent purchases such as needed home repairs or medical payments.

On the other hand, it may be in your best interest to select to receive structured payments over time. Many people use this option as a way of delaying pension and social security payouts. You can also use these as a way of adding to the income you earn from social security and pensions over a certain period of time. For example, if you have temporary costs that are higher than your fixed income can afford, this is a great time to include reverse mortgages in your retirement planning.

Another value from reverse mortgages to your retirement planning is the access to a non-cancelable, growing line of credit. While you may not need credit at all times, this line of credit can help when you may not have enough cash to cover every unforeseen expense. Other credit lines may be cancelled over extended periods of non-use and have to be paid back monthly. A reverse mortgage cannot be closed on you and you only have to pay it back when you are no longer living in your house. This can help you better budget during retirement planning.

Contact Us to Learn More About Retirement Planning with Reverse Mortgages

California residents considering a reverse mortgage for their retirement plans should reach out to Citizens Lending Group today. Our specialists and experts are happy to help you learn all the important details about how these loans may help you. Contact us today to learn more about reverse mortgage requirements and if a reverse mortgage is right for you.