According to PropertyShark.com, more older adults are struggling to keep up with housing costs. Over half of Americans 45 and older want to age in place (remain in their current homes throughout their senior years). Sadly, a whopping 3 out of 5 of older Americans have less than $100,000 saved for retirement and a minuscule 4 percent have more than $1million set aside for retirement.
At this rate, is it any surprise that a third of older adults don’t plan on ever retiring fully? There ae government sponsored senior housing programs out there, but less than half are aware, much less knowledgeable about those programs.
I want to talk about reverse mortgages. If the adult children of seniors already own their own homes, maybe inheriting yours isn’t what they want or need. A reverse mortgage is a financial tool that can assist seniors to live more financially independent in their sunset years, by refinancing their greatest financial asset, their home. The proceeds can be given out in a lump sum, but most prefer to receive monthly payments from the reverse mortgage. That monthly stipend can make the difference in paying for medication or living expenses. This isn’t about living beyond your means, it is about retirement after stock market and pension fund valuation fluctuations that have devastated the savings of many older adults. If you have equity in your home, you may have the resources to age in place as you desire. (Please note homeowners are responsible for any taxes and insurance due on the property regardless of whether a reverse mortgage is obtained.)
Upon the death of the homeowner with the mortgage, the heirs have the option of refinancing the home back out of the reverse mortgage. Recent homeowner bill of rights have given lenders permission as well as the responsibility to communicate with the heirs of a deceased borrower in order to facilitate refinance or settlement of a mortgaged property. That means less hassle for heirs to refinance and keep the home in the family if they desire. If you are struggling, are over 65 and have equity in your home, contact ReverseEasy.com to learn how a reverse mortgage can help