Do financial planners recommend reverse mortgages?

Portrait of loving senior couple embracing tenderly posing for camera in beautiful garden

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 or call 707-508-8473