The DAY I turn 62. I’m getting a reverse mortgage. Why would I want to keep making mortgage payments when I don’t have to? That $2,000 is going straight into a mutual fund to increase my retirement cash. It’s a great tool!
I’ve been doing reverses for a dozen years or so, here in Southern CA. If you plan on living in your home indefinitely, then yes, a reverse can certainly improve the retirement picture for you. The principal limit is lower, the younger you are, though, and they work only of the current mortgage balance is relatively small or if the home is free and clear. Most borrowers chose the credit line option. The unused portion grows in tandem with the underlying interest rate of the loan, which is a big plus. About the only people not happy about you taking a reverse are any heirs, since it impacts their inheritance. :-O
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