Who’s The Ideal Home Equity Conversion Applicant?

It may surprise you to learn what makes the ideal home equity conversion applicant in San Jose, California. Most people assume it’s older Americans in financial distress during retirement.


What if that weren’t the case?


Sure, a reverse mortgage can help people in this situation, but there are plenty of others who are the ideal candidates – people who could benefit from getting a reverse mortgage early in their senior years, offsetting the chance of becoming a retiree in financial distress.


If you’ve fallen for the reverse mortgage myths and think you aren’t a good candidate because you aren’t in financial distress, read on to see if you could become one of the most prepared (and wealthy) San Jose retirees.


Homeowners Age 62 and Older


You must be at least 62 years old to qualify for a home equity conversion loan, but most lenders advertise the program to ‘OLDER’ homeowners, skipping over those who’ve become newly eligible.


Why wait?


Did you wait to save for retirement or did you listen to conventional advice and save early to maximize your retirement savings?


Just like your savings, an untouched line of credit grows at the loan’s effective rate. If you don’t touch the funds, they’ll be worth more in the future, when you may need them. The funds grow tax-free and you can withdraw them without tax penalties too, leaving you with more funds when you’re older and may need to draw on them.


Using your reverse mortgage funds strategically, you could become even more prepared for the later years of retirement when many retirees struggle because they’ve blown through their savings. With longer life expectancies, isn’t it worth preparing for what you hope will be a lengthy (and enjoyable) life?


Employed Homeowners


You don’t have to be retired to take advantage of the reverse mortgage program. As long as you meet the age requirements and prove you can afford the home’s maintenance, taxes, and insurance, you may qualify.


So why tap into your home’s equity if you’re still working?


It’s a simple strategy. Let’s say you still have a few years left on your forward mortgage (regular mortgage). You could make payments to it, reducing your principal and increasing your home’s equity. But does it help you strategize your retirement plan?


It could if you use the money you save correctly, but most people don’t. All they see is money tied up in their home and they wonder if they should sell their home.


What if you could do the same with a reverse mortgage?


The reverse mortgage would pay off your existing forward mortgage and you’d have an outstanding balance. While you’re not required to make payments to the reverse mortgage, if you’re working, you may be able to afford it. As you pay the balance down, you increase your LOC balance and give yourself even more money for retirement, if you need it.


It’s like killing two birds with one stone – preparing for your future and paying off your mortgage. If you run into financial issues, though, you aren’t required to make the payments as you would be with a forward mortgage.


It’s like having a safety net now while preparing for the later retirement years.


Homeowners in their ‘Forever Home’


The home equity conversion loan is a goldmine for homeowners with no intention to leave. With your equity tied up in your home, you may think it’s best to move and take the proceeds ‘just in case.’ You could put the funds in a savings account or invest them, letting them grow.


But you don’t have a house – then what? You have to spend some of the money to find a place to live whether you buy or rent.


What if you could have the funds ‘just in case’ and remain in your home? That’s what a reverse mortgage does. If you take the funds as a line of credit and you don’t tap into the line, you don’t owe anything right now. Even if you do tap into the funds, you don’t have to make payments, but you can if you want/are able.


Taking out a reverse mortgage sets you up for retirement if you need the funds moving forward. Think of it as a ‘just in case’ retirement fund. If the funds grow as you age, you have more money to tap into, creating a retirement plan you didn’t have before taking out the reverse mortgage.

Homeowners who Don’t ‘Need’ the Funds


Here’s the largest myth. Most people believe a home equity conversion loan is only for ‘desperate’ homeowners or those who can’t make ends meet and need the equity in their home.


It’s not.


It’s like an insurance policy. You have funds ready if you need them, but if you don’t touch them, there are very few costs. Yes, you’ll pay upfront costs when you take out the loan, but beyond that, you’ll pay very little unless you need the funds and if you need them, the fees are worth the financial security, right?


Bottom Line


The home equity conversion loan has helped thousands of San Jose residents set themselves up for a comfortable retirement.


Homeowners learned the strategic way to use the mortgage to plan for retirement starting at age 62 rather than waiting until they’re in financial distress. It’s a great way to enter retirement peacefully, knowing you’re financially secure no matter how long you live.


To learn more about how a reverse mortgage in San Jose may help you plan your strategic retirement plan, download my free book by visiting www.reversemortgagelive.com.


This offer expires soon, so don’t delay. I can’t wait to show you how a home equity conversion loan could be the missing piece to your retirement plan.

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