Many of us are new to the concept of reverse mortgages and may not understand exactly how it works at first. As a Reverse mortgage lender in Texas, we have seen our customers that were unsure about the rest of their retirement at first and after sitting down with one of our Financial Advisors, they realized a reverse mortgage can be a valuable resource to a happy retirement.
The average retiree has most of their net worth in the equity of their home in addition to other investments. As the Federal Reserve is slow on deciding to raise interest rates, seniors will continue to depend on investment income without feeling a strain on their finances.
According to a recent article from CNBC, “it’s easier for retirees to generate cash flow from reverse mortgages.” “At an interest rate of 5%, CNBC posted that a 65-year-old homeowner could take out a reverse mortgage of up to $270,000 on a home valued at $500,000. When rates rise to 7%, the maximum loan amount afforded to this same senior drops to $182,000.”
Most seniors that are getting close to retirement that do not have the resources to maintain their medical bills and maintain a decent standard of living. If most of their savings is in the equity of their homes and not their 401 (k), this gives a Texas family hope for their future.
Speak with one of our Financial Advisors that specialize in reverse mortgages in Texas to review your finances. We want to help you enjoy your retirement. Give us a call today!