There are a handful of reasons Dallas-Fort Worth, Texas is such a popular area to retire. Boasting a warm climate, lots of space, interesting surrounding small towns, exciting nightlife and outdoor activities, and many niche retirement communities there is simply something for everyone. In addition, there is no state income tax and no estate/inheritance tax, keeping the cost of living lower than surrounding states for seniors. But did you know the average retiree lives off less than $1,500 per month between Social Security and a small nest egg? And with retirement lasting two to three decades, it’s not uncommon for the nest egg to only last a portion of their retirement years.
This is why financial advisors and retirement planners are beginning to take a better look at incorporating reverse mortgage into a long term retirement strategy. Through the strategic use of an FHA insured reverse mortgage, retired homeowners can use the equity in their homes to supplement traditional retirement funds and provide guaranteed cash flow – without being required to make monthly mortgage or loan payments. Via the reverse mortgage line of credit, seniors can use the funds when needed and however they deem fit – additional income, medical expenses, vacations, home repairs or modifications, gifts, etc. As long as the borrower continues to live in the home and keep up on property taxes, homeowners insurance, and HOA fees, the line of credit funds will always be available.
Reverse mortgages are available to homeowners 62 and over. This FHA insured loan offers funds through a lump sum or monthly installments without a monthly mortgage or loan payment. With many protections in place to ensure borrowers are adequately educated before using this option, such as required third-party counseling, reverse mortgages are gaining in popularity among retirees from all walks of life. A reverse mortgage for purchase option is available for those looking to purchase a new residence.
Brenda Bejarano is a Reverse Mortgage Specialist serving the Dallas, Fort Worth, Plano, Richardson, McKinney, Frisco, Hurst and Bedford areas of Texas. Click here to contact Brenda and learn if a reverse mortgage is right for you.