The New Reverse Mortgage can be your Personal Retirement Paycheck
When that day finally arrives and you’ve announced your retirement, among the many things that will be different in your life is you’ll no longer be getting a weekly paycheck. And that is going to require some adjustment to the lifestyle to which you have become accustomed.
If you’re not quite ready to make that sacrifice, you already have the solution right where you’re sitting. If you love your home, it’s time to let it love you back.
What is The New Reverse Mortgage?
The New Reverse Mortgage or RELOC (Retirees Equity Line of Credit) has several payment options to allow you to get that personal retirement paycheck in the way that best fits with your personal retirement plan. You can chose to use the RELOC as you would a traditional line of credit and pay for those unexpected expenses as they rear their ugly little heads without tapping into your savings or retirement accounts.
If you want to preserve your line of credit for future expenses, you can always repay the previous draws which is like repaying yourself. Can’t make a payment each month? No problem you can pay as much or as little as you like with a RELOC.
The New Reverse Mortgage is your answer if you want to delay receiving Social Security
Many financial planners advise waiting as long as possible (age 70) before you elect to receive your Social Security benefits. If that’s your plan, Social Security retirement benefits are increased by a certain percentage (depending on date of birth) if you delay your retirement beyond full retirement age or approximately 8% per year.
One of the features of The New Reverse Mortgage is you can elect to receive a monthly payment from your lender in an amount that’s based on your age and the length of time you wish to receive the payment. This is referred to as the Time option.
The New Reverse Mortgage can give you a paycheck for as long as you live
If the security of having a Personal Retirement Paycheck for as long as you live in your home sounds like a great idea. Then check out the Tenure Option of the RELOC.
The Tenure Option is calculated based on your current age and equity. The amount you will receive is guaranteed for as long as you live in your current home and meet the other terms of your loan. Even if you outlive what the actuarial tables say or if your home value declines you’ll still get that monthly personal retirement paycheck.
The good news? If your circumstances change and you would like to switch among the options, your lender can set that up for you too.
The New Reverse Mortgage isn’t for everyone…but it could be!
If you’re still wondering if a Reverse Mortgage is the right solution for you but you’re not ready to sit down with one of our Reverse Mortgage Experts, then we’ll be happy to mail (or email) you Use Your Home to Stay at Home which is the official federally approved consumer booklet for those considering a reverse mortgage.