Do financial planners recommend reverse mortgages?

Do financial planners recommend reverse mortgages?

Financial planners and advisors do recommend reverse mortgages as they’re a useful tool for seniors in retirement.  Let's explore why a reverse mortgage might be a savvy option.

Reverse mortgages allow homeowners 62 and older to access the equity they've built up in their homes. Unlike a traditional mortgage, you receive funds instead of making monthly payments. This can be a great way to boost your retirement income, cover medical bills, or even make home improvements that allow you to age in place. There's flexibility in how you access the funds – you can choose a lump sum, monthly payments, or a line of credit.

Another great benefit for retirees is the tax advantages of a reverse. When you pull money from a 401k or IRA you’re taxed on the distribution.  Depending which state you live in and your income bracket; the taxes could exceed 30% between state and federal.  When you use a reverse mortgage, the money is not a taxable event; saving you thousands.

Lastly reverse mortgages can alleviate the financial stress a lot of seniors have by eliminating their monthly mortgage payment and if there’s enough equity; access to cash, allowing them to live their retirement years in comfort.

To learn more about reverse mortgages and to find out if one is right for you visit https://reganteam.com/reverse-mortgage/ or call 707-508-8473