Who Benefits most from a Reverse Mortgage?

Who benefits most from a reverse mortgage?

A reverse mortgage is a useful and potentially life changing financial tool for seniors 62 and older, but it's not a one-size-fits-all solution. Understanding who benefits most can help determine if it's right for you.

Homeowners with significant home equity can leverage that equity into additional income with a reverse mortgage and pay off their current mortgage. The more equity you have, the more funds you can access through the loan. This can be especially beneficial if you haven't saved enough for retirement or have limited income.

Another group that can benefit are seniors who want to stay in their home. A reverse mortgage allows you to continue living in your home while accessing funds from its value. This can be a great option for those who don’t want their life upended having to move or who may not be able to afford to move elsewhere.

Seniors who have a large retirement account but want to avoid withdrawing from it due to hefty state and federal taxes. With a reverse mortgage, the money you receive from your home is not a taxable event.

A reverse mortgage is not a good fit for is a senior who doesn’t have a lot of equity in their home.  A perfect example is a home worth $500,000 with a $400,000 mortgage; with only $100,000 in equity a reverse mortgage would not work.

Ultimately, a reverse mortgage can be an extremely helpful tool for seniors with substantial home equity who want to stay in their home.

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