Learn How to Retire Comfortably at Home

 

Planning for the future can be a little intimidating for many who face diminishing finances. Medical costs, credit card debt, and in-home care are common expenses that many of us have to confront as we age. Your dreams for retirement may include making home improvements or living more comfortably, but many seniors are realizing these dreams are becoming more difficult to reach.

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However, there are options available that may allow you and/or your loved ones to live a comfortable retirement lifestyle. Home Equity Conversion Mortgages (HECMs) can help provide financial stability for many seniors by utilizing the equity in their home to:

  • Finance In-Home Care: Aging in place with the comforts of home. In-home care is usually more affordable than many assisted living expenses, and allows the homeowner the comfort and stability of living in their own home.
  • Afford Home Modifications: Homeowners may need to make home modifications as they age for aesthetic or mobility reasons, to make the home as comfortable as possible.
  • Pay Off an Existing Mortgage: A HECM loan requires the homeowner’s existing mortgage be paid off with the proceeds of the loan. Imagine a life without monthly mortgage payments, and improving your monthly cash flow. However, as with any loan there are obligations you must continue to meet such as: continue to live in the home as your primary residence, pay required property taxes, homeowners insurance, and maintain the home according to Federal Housing Administration requirements. Failure to meet these requirements can trigger a loan default that may result in foreclosure.
  • Manage Medical Costs:  The Journal of General Internal Medicine found that 75% of Medicare-eligible households spent at least $10,000 on health care in the last 5 years. Funds from a HECM loan can pay for ongoing or unforeseen medical expenses.

If you are a homeowner aged 62 years or more, try our reverse mortgage calculator to determine an estimate of how much you may be able to receive from a Home Equity Conversion Mortgage Loan.

Explore the possibility of living more comfortably during retirement.