Can a reverse mortgage improve your situation?

Distressed homeowners living alone

Although many retirement dreams include relaxing and enjoying work-free days, the reality for many Americans is that retirement can sometimes be a stressful time.

Between rising health care needs, home maintenance and repairs, or simply limited cash flow due to a fixed income, retirement can actually feel less like relaxing and more like work. A reverse mortgage may be able to help if you’re finding yourself feeling limited by your current situation.

For those who qualify, here are a few ways a reverse mortgage may possibly improve your situation:

• Freeing up cash flow. If you’re feeling pinched by tight finances in retirement, a reverse mortgage may be a way to simply free up some cash flow. By potentially tapping into your home equity while you still live in your home as a primary residence, a HECM (Home Equity Conversion Mortgage) allows you to access your loan proceeds as a lump sum, in monthly or ongoing installments, or as a line of credit you can access.*
• Providing funds for home maintenance. For many older homeowners, home maintenance is daunting. The idea of shoveling snow, mowing a large lawn, dealing with exterior and interior fixes and other home improvements can be stressful. A reverse mortgage can potentially free up funds for these needs so you can enjoy your home with greater peace of mind.
• Helping with age-friendly home improvements.With a reverse mortgage, you may be able to extend your ability to live in your home with a few simple home improvements, such as ramps for ground level access, or grab bars for stairs and bathrooms. A reverse mortgage can potentially provide funds you can access to help with these home improvements that make your home more livable as you age.

If you are feeling stressed by your retirement situation, consider the ways a reverse mortgage may be able to help you.