Reverse Mortgage Essay

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Recommended: Retirement Plan Selection

Are you getting worried that your retirement funds are getting too thin? A financial planner can help you to understand how a reverse mortgage can supplement your retirements savings. Naturally, according to research, financial experts have stated that the current retirement saving profile will not provide enough money to most people approaching the retirement age. For instance, only 5% of people at the age 55-65 have met the saving targets in their retirement account balances. Therefore, the retirees and their financial planners should seek other means to enhance their retirement planning.

Indeed, a reverse mortgage is accompanied with significant benefits, such as eliminating monthly mortgage fee of individuals. Moreover, according to the experts, it can also offer a guaranteed line of credit which can be used to trap the dead equity at home; consequently, improving the retiree financial status.

Financial planners are considering the reverse mortgage as a powerful tool for …show more content…

The assurance makes reverse mortgage superior over other loans from most banks, where your loan can get frozen if the value of assets declines. Moreover, it is also important because the real estate market is stable, and is considered to exist all the time; therefore, its condition is priceless.

Also, after you get the reverse mortgage credit, you are not required to pay monthly payments on the loan; instead, you will repay at the end of the loan period. Therefore, people can use the opportunity to relocate and invest the funds to meet their financial needs. In most case, the eligible homeowners will use the cash from a reverse mortgage in settling debts in existing home equity line of credit, which requires you to pay for it every month. It also increases the money available; hence, you will not use your savings to pay for your monthly

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