If I had a group of people who were in New England for the first time and they only had one day to explore, some would want to go to the mountains, some to the beach, some to the lakes, some to Boston or Portsmouth.  There are so many choices!  That is how it is with reverse mortgages.  The options are designed to meet the varying needs and wants of a diverse Senior population.  

I was recently asked if I could, in one sentence, describe the “Reverse Mortgage” (more officially called the HECM or Home Equity Conversion Mortgage).   The answer is: a reverse mortgage is a way to have your home equity work for you in retirement.  Just like a 401K or IRA, you make deposits into your home equity each month when you pay your mortgage.  Some of your payment is allocated to lower the loan balance which in essence increases your equity.  By the time you reach retirement you may have substantial equity.  When you get to the point where you’ll no longer receive W2 income (or less of it), you have to strategically think about what your income will be from all sources.  This is when I step in and work with the home owner and his/her/their financial planner to determine how a Home Equity Conversion Mortgage could be part of the retirement plan.  I work with several financial planners on a regular basis and am always happy to make a referral if the home owner needs to start planning and doesn’t have a retirement adviser in place.  

How can Home Equity Work for You in Retirement?  
1) You can pay off your existing mortgage and never have to make a payment again (of course taxes & insurance must always be paid and you have to maintain your home and pay utility and HOA dues when applicable).
2) You can have a growing line of credit
3) You can create an income stream
4) You can take a lump sum of cash out upfront
5) You can do any combination of all of the above

Start exploring how your home equity can work for you.  Call Renee Duval at 603-345-5644 to start the conversation.  There’s no cost or obligation.  

Thinking about all the things you want to do when you retire is fun.  Planning so you can live your dream is crucial.   The equity you build in your home is an important part of your retirement wealth and should be explored too.