Why should you consider a reverse mortgage?
During our working years, most of us spent our earnings supporting our home. When we retire, it seems only fitting that our home help support us.
Home equity is our most valuable asset. It may also be our most versatile asset.
The money you have put into your home is yours. It is available to you in the form of a loan while you are still living in the home, while you still own the house in Southern California. Some people have said that home equity that is not utilized is “dead money.”
If you need it, why not use it?
For much of our younger lives, we plan. We plan our careers, we plan to purchase a home, we plan our vacations, we plan to send our children to college. Successful aging also requires planning. As planners, we need to be honest with ourselves about the necessities and possible surprises of getting older.
We need to ask ourselves: Do we have the right home? Will it accommodate the physical changes we go through as we age? Do we have the right health coverage? Are we prepared for health emergencies? How long are we going to be able to drive? Do we have alternative means of transportation? Are we going to be able to continue the activities we love most, sharing time with family and friends, viewing sports and entertainment, staying physically active? And are we prepared financially to support all of these areas?
A key to good planning for aging is a realistic assessment of the financial resources available to us. And home equity must be included among those resources.
If you are fortunate enough to have home equity in your California home, take advantage of it.
In an earlier time, when there were more defined benefits retirement plans that provided you with a steady pension, when income growth was more pronounced, people may have had the luxury of letting some of their financial resources sit still. But that’s not the world we are living in today.
Some of this information first appeared in the National Reverse Mortgage Lenders Magazine (Nov/Dec 2015)