Retire Comfortably Use Reverse Mortgages Smartly Now
Benefits of Reverse Mortgages
Reverse mortgages offer several advantages. They provide a steady income stream, which can be crucial for covering day-to-day expenses without depleting other retirement savings. Additionally, since the funds received are considered a loan advance, they are generally tax-free, allowing you to maximize your available cash2. Furthermore, you retain ownership of your home, and the loan is only repaid when you sell the house, move out permanently, or pass away.
Costs and Considerations
While reverse mortgages can be a great tool, they are not without costs. Fees can include origination fees, closing costs, and servicing fees, which can add up. It’s important to weigh these costs against the benefits and consider how they might affect your estate. Additionally, you must continue to pay property taxes, homeowners insurance, and maintain the home, as failing to do so could result in foreclosure3.