Reverse Mortgages Can Provide Needed Cash Flow and Flexibility, But Educational Opportunities Still Exist, WSFS Mortgage Study Reveals - Seite 2

However, one-third (34%) said they would probably (21%) or definitely consider (13%) a reverse mortgage if it was relevant to their financial situation. After learning more about use cases and benefits of reverse mortgages during the survey, 16% of respondents who indicated they were very knowledgeable about reverse mortgages, 26% who were moderately knowledgeable and 22% who were slightly knowledgeable said they would be more likely to get a reverse mortgage, compared to 17% who said they were not knowledgeable about reverse mortgages.

Among the list of Ruben’s recommendations:

• Know the basics: With a reverse mortgage repayment is due when the last of the borrowers no longer occupies the house as their primary residence. At least one borrower must be 62 years old or older and must occupy the house as their primary residence. Funds from a reverse mortgage can be provided in lump sums, monthly payments or set up as a line of credit for when you need it.
• Potential Uses: A reverse mortgage can enable homeowners to leverage the equity they’ve built in their home to eliminate existing monthly mortgage payments, provide cash flow without needing to tap into other retirement savings, pay off debt, and more.
• For Those Looking to Downsize: Homeowners could sell their current home and use the proceeds from that sale coupled with a reverse mortgage on their new home to make the purchase without the need for monthly mortgage payments.
• Work Closely with Your Advisors: Your financial advisor and lender can help answer any questions you have and dispel the stigma of reverse mortgages being a ‘last resort.’ They will also be able to evaluate if one is right for your situation and help weigh the pros and cons.

Retirement and Financial Planning Factors

Reverse mortgages can play a significant role in retirement and financial planning by providing homeowners with a supplemental source of income. Three-in-ten (29%) indicated they would definitely or probably consider a reverse mortgage as part of their retirement plan.

“For many Americans, their house is their largest asset, but it can also be your largest liability in the sense of cash outflow each month. Your home comes with a lot of costs, like mortgage payments, utilities, property taxes, and more, which can really impact retirement planning,” said Hopkins. “Housing, wealth and retirement is more about cash flow, and can you maintain that cash flow and your property while living the life you want in retirement.”