While a Home Equity Conversion Mortgage (HECM), or reverse mortgage, can be a smart financial tool for those needing to supplement their retirement income, its possible ability to protect a well-funded nest egg is easy to overlook.
As retirement approaches, even those with a solid financial plan may fear the damage an ill-timed market downturn can do to their investment portfolio. However, protecting your retirement plan with a reverse mortgage could be worth considering.
One of the ways a HECM can become part of your retirement strategy is by using the funds from your home equity to maximize the benefits you’ve earned over the years. A reverse mortgage becomes an option at age 62, but eligibility for full retirement benefits may still be several years away. Tapping into your home equity could be one strategy to bridge the gap.
Since it’s impossible to predict precisely what the stock market will do when retirement arrives, the added availability of a reverse mortgage may take the sting out of a poorly timed bear market. Rather than having to withdraw your investments while their value is down, the funds from a HECM could support your retirement and buy you time to recover your losses.
Freedom of Flexibility
Even absent a diving economy, a reverse mortgage could provide additional flexibility to maximize your investments. It could offer an alternative source of emergency funds that won’t disrupt your financial strategy. Or it could be used as an added safety net that gives you the confidence to pursue more aggressive investment options that could pay off handsomely down the road.
Keep In Mind
Regardless of the reason for the HECM, a reverse mortgage borrower will need to meet all the requirements of the loan, such as maintaining the property as a primary residence, paying all relevant taxes and insurance, and keeping the home in good shape.
As you plan for your upcoming retirement, be sure to discuss with advisors the potential that a HECM could play an essential role in securing your future. And consider reaching out to an Open Mortgage Loan Originator like Melinda Hipp for additional details about your reverse mortgage options.
To find out more about how a Reverse Mortgage can work for you call Melinda Hipp , CRMP with Open Mortgage at 210-493-7332, email at email@example.com or visit texasreverse.net to learn more.
More about Melinda Hipp and Open Mortgage -
Melinda Hipp is Branch Manager with Open Mortgage|San Antonio and specializes in working with senior homeowners 62 and over who would like to access the equity in their home through a Reverse Mortgage. She has handled hundreds of satisfied Reverse Mortgage clients over the past ten years with many raving fans. She and her team are dedicated to giving you boutique service, a quick closing and personalized customer service.
Melinda regularly provides training to local real estate professionals and holds the designation of MBA, CRMP (Certified Reverse Mortgage Professional) and CMC (Certified Mortgage Coach.) Melinda is also an active member of NRMLA (National Reverse Mortgage Lender’s Association). An avid golfer, Melinda was a charter member of the San Antonio Chapter of the Executive Women’s Golf Association. She is currently a member of the National Reverse Mortgage Lender’s Association, Women’s Council of Realtors, San Antonio Board of Realtors, CRS and a board member of Golf San Antonio.
Melinda Hipp, CRMP | NMLS #219085
1870 W. Bitters Rd., Ste. 202
San Antonio, TX 78248
Toll Free: 844-265-5513