It is an essential part of life to try to ensure you have enough money when you retire. One of the ways to achieve this is by planning your retirement funds through a Reverse Mortgage…
Looking after you
You have worked hard your entire life, contributed to National Insurance payments, and paid all your taxes. So, when you reach your retirement years and your children have flown the nest, now is the time to start thinking about your needs in your senior years. Have you ever considered the value that could be released from your property and what you could do with that money?
You could go on that world wide cruise you have always wanted to do (post COVID-19 times now of course), or pursue a new sport/activity, enrol on a creative course, or learn a completely new skill that you will enjoy as a pastime. To do any of these things, they will require money. Therefore, what better opportunity to think about than a reverse mortgage at this moment in time to benefit from having more money in your pocket.
Reverse Mortgage Explained
The benefits of a reverse mortgage for seniors is that it allows you to access the equity of your home via a loan which is dependent on the amount you can borrow, which will be based on your age and the value of your property. Essentially the older you are the more you would be able to borrow. As an example, if you are 60 years old you would be able to borrow up to 15% of the value of your property, whereas if you are 75 years old this would increase to 30%. This is based on the LVR (Loan to Value Ratio) which increases by 1% for each year you age.
This simple but effective equity calculator enables you to input your details and see for yourself what you could be accessing financially.
Having extra money to spend
The benefits with what you could do with the money that is provided with a reverse mortgage are endless. You could use this money to top up any investments you may have, it could allow you to refinance your monthly spending and determine your outgoings, enjoy the lifestyle you deserve, fund your care requirements for when you get that bit older and enable you to provide financial support to your children and grandchildren as you support them in their career paths. As a parent you never want to see your children struggle financially and will always endeavour to help them when you can, so it is a win-win situation. You could end up with more money to spend, as a result of taking out a reverse mortgage and you will also be helping the ones you love.
*This is a collaborative post