Can A Reverse Mortgage Help You Retire?

Blog Post Image
Real Estate


Can A Reverse Mortgage Help You Retire?

You have spent the last several decades starting your day at the height of sunrise. Maybe you had a morning commute that wasn't the most pleasant - traffic and unfavorable weather depending on the season. Also, many hours were spent en route to work or home, and not nearly as many hours in your home, loving your family, or on week-long vacations or any other more compelling options versus being away for work.


Now, the time has come where you would like to trade in the early and potentially long commutes for more laidback days, retired and happy. Besides, you have earned it. But, before simply turning in your keys for the final clock out, it is essential to lay out a retirement plan rooted in success. Planning includes identifying the proper tools to assist in a stress-free retirement.


A reverse mortgage in Colorado is one of those tools. The name is quite eponymous with the gist of its role. It's a mortgage loan that is essentially paid to you in one form or another. It creates a cash flow that can be valuable in multiple ways for the retired or someone seeking to retire.


A Reverse mortgage helps create cash flow and enhances financial stability.

Potentially, the most beneficial aspect of a reverse mortgage in Colorado is that the house you have built and created memories in can stay with you forever, even after you've retired. Securing a reverse mortgage in Colorado allows you to keep your home while receiving the benefits of a reverse mortgage loan. The benefits or associated payments can be dispersed monthly via a lump sum or a line of credit. There is also the option to receive a combination of the methods. You can use this money to take care of unexpected medical expenses. You can also use it to purchase that RV you have always envisioned having for a summer-long West Coast road trip. The cash flow can help make the most of your retirement.


The loan requirements are not subjected to your pension. 

Unlike the initial process to secure your family home -providing multiple qualifying documents, your home's equity and age are your qualifying factors. Pension and other associated retirement payments are typically only a portion of your income. For traditional loans, this could pose an issue in qualifying. Reverse mortgage loans are available to homeowners 62 or older, and there must be built-up equity in the home. The amount required will be based on your particular home and its value. Speak to a qualified Reverse Mortgage expert.  Kathy Stenberg of Springs Lifestyles Real Estate is happy to connect you.


There is no monthly repayment, so no financial overextension. 

The last thing you are interested in adding once you retire is an additional financial burden, and it could mean coming out of retirement to return to the workforce. With a reverse mortgage, instead of making monthly payments on the loan like your typical home loan, the payments are being made to you, hence reverse. While there aren't any monthly payments associated with the loan itself, it is critical to maintain other home-related expenses such as taxes, insurance, and applicable maintenance fees. Failing to do so could lead to default of the reverse mortgage loan and applicable fees.


Alternatively, there are a few factors to consider when considering a reverse mortgage. The most important factor... Is a reverse mortgage the best tool for your retirement plans? 

Increasing your current cash flow is ideal if the need to liquidate equity is associated with unexpected expenses or even if it's to withdraw for the enjoyment of life. While there are no monthly payments associated with the reverse mortgage loan, there is a repayment. The fees are typically associated with the asset's sale outside of originating and closing costs. Unless the home is sold before the requirement by your heirs, it is essential to consider what that final repayment could look like. Determine if it aligns with your plans for your heirs.


Are you considering a reverse mortgage in Colorado? Contact Springs Lifestyles Real Estate for a consultation to determine if this tool can aid your retirement plans.

By the way, if you don't feel like a reverse mortgage is for you and are interested in selling or buying, contact Kathy at 719.963.4867

Check out our other blog posts about retirement and such here.


Reverse Mortgage in Colorado