A recent conversation with a homeowner revealed they were considering retiring at 65 but didn’t know if they could afford their current mortgage payments and other monthly debts with their social security and pension. He said he’s experiencing some troublesome back pain that is causing problems performing at his job and that he’s inquired about other positions within his company that doesn’t require him to be on his feet all day. He is not in the financial position he thought he would be in at this time in his life. He is not alone.

Let’s say he can’t afford his mortgage, regardless of what put him in this position to begin with, a reverse mortgage may be able to help him in his situation. What are his options at this time? He can try to sell the home and move into more affordable housing somewhere- that’s not something he’s interested in doing at this time as his wife is still working and her commute is “perfect” as she says it. His company recently let some folks go and other positions aren’t opening up at this time that he’s able to take that keeps him off his feet. His ability to perform his work properly, due to his back pain, could eventually lead his company looking to replace him or it could lead to permanent disability if he can’t get the relief he’s sought. So what happens here? From time to time we hear folks say that if someone can’t afford their mortgage they shouldn’t be living in a house they can’t afford. This gentleman and his wife can afford to live in their home- while they are both working, but will be cutting it close if he retires. So do they give up? What to do?

In this case, this couple will have more accessible cash upon his retirement if they use a reverse mortgage to pay off his current mortgage. Since they are no longer making a mortgage payment, they get to keep more of their income each month than they were and he can retire without fear of losing his home.

In 2001 Gallup conducted a survey asking folks if they thought their IRA, 401(k) and KEOGH plans would be a significant source of income for them in retirement and 60% said yes. In 2001.

Does this mean that a reverse mortgage can help the other 58%? Not necessarily but at least its an option they did not previously have. A reverse mortgage can help you retire.

For more information, go to the frequently asked questions section of this website or contact us here.

Social tagging: HECM for purchase > maryland reverse mortgage > prince georges county > retirement planning