Reverse Mortgage
STRATEGIES
10 Reverse Mortgage Strategies
10 Reverse Mortgage Strategies
The ways people are responsibly using their reverse mortgages for a better retirement are virtually unlimited.
1. Pay off my existing mortgage to increase cash flow. Paying off your current mortgage is a reverse mortgage requirement. By removing your monthly mortgage payments, your cash flow increases*.
2. Renovate my home to make it safer and more enjoyable.
The right home improvements can also help maintain or even increase the value of your home.
3. Give my retirement savings accounts more time to grow.
By tapping home equity and leaving your investment accounts intact, your assets can continue to grow through the magic of compounding interest.
4. Delay taking my Social Security for larger payouts later. Social Security benefits increase by a certain percentage each year if you delay your retirement beyond full retirement age. That’s an effective savings plan.
5. Build a stronger safety net. The best defense against unexpected expenses, such as medical emergencies, sudden market downturns and other life events, is to ensure you have financial resources standing by to deal with them.
6. Gain greater peace of mind for my long-term healthcare needs. By creating a reverse mortgage line of credit, which grows over time, you can have money for your care when you need it.
7. Purchase another home that will better fit my needs. Instead of using all cash, put down only a portion of the purchase price
(from your previous home’s sale or from other savings and assets) and use a HECM to cover the rest, leaving you with no future monthly mortgage payments*.
8. Protect my portfolio in a down market.
Instead of being forced to sell an investment in a down market, you could wait for the market to rebound by using proceeds provided by a reverse mortgage to make
up any shortfall.
9. Create a lifetime income stream for my family and me. A reverse mortgage gives you multiple payment options, including monthly disbursements for life as long as you live in your home**.
10. Pay off other debt, like high-interest credit cards. Using a reverse mortgage to pay off credit cards or other high-interest debt may prove a sound financial strategy.
What a reverse mortgage shouldn’t be used for, is an excuse to overspend or avoid addressing what caused the debt in the first place.
*You must continue to maintain your property, pay property taxes and homeowners insurance, and otherwise comply with all loan terms.
**Available with Tenure-Based or Modified Tenure plans, so long as Borrower does not default on the loan. Borrower must maintain home as principal residence, pay all taxes, insurance, maintain the home, and comply with all other loan terms. With Modified Tenure plans, lender will set aside a specific amount of money for a line of credit.
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Shining Star Funding
Corporate Office
6101 Bollinger Canyon Rd, Suit 344
San Ramon, CA 94583
(925) 820-2981
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