REPAYMENT OPTIONS
Pay as much or as little as you like each month toward principal and interest. As with any mortgage, you must meet your loan obligations, keeping current with property related taxes, insurance and maintenance, and any homeowners association fees.
REPAYMENT OPTIONSGain access to a line of credit you can tap into as needed, or a steady stream of monthly funds¹.
HIGH-FLEXIBILITY LOANSOur loans come with non-recourse protection so you’ll never owe more than your house is worth when the loan is repaid.
PROTECTIONOn average, older Americans with debt carry $12,490 in total non-mortgage debt (such as credit cards and auto loans).² Learn how we can help you to consolidate your debts to help lighten your load.
Arlene and Paul are 67 years old. They have a mortgage, balances on their credit cards, and a car loan. Each month they have to pay burdensome payments on these.
With a reverse mortgage, they can consolidate all their debt into one loan that drastically reduces their monthly payments. (As with any mortgage, they must meet their loan obligations, keeping current with property taxes, homeowners insurance, maintenance and any homeowners association fees.)
If you’re a homeowner who’s at least 62 years old, with equity in your home, you may be eligible for this financial solution.
A strong investment portfolio was once regarded as the key to a comfortable retirement. But with today’s current rates at historic lows, folks in or nearing retirement are focused on cash flow.
At this phase, financial priorities shift from saving as much as you can to making the most of the money you put away during your working years. Rather than receiving a steady paycheck, you may be drawing income from multiple sources — Individual Retirement Accounts (IRAs), Social Security benefits, pension distributions, investment income, annuity payments or even a part-time job.
And monthly bill paying can become more complicated. For example, you may now be responsible for paying insurance premiums directly to your carrier, rather than through a paycheck. It also may be up to you to put aside money for quarterly estimated taxes, as state and federal income taxes aren’t withheld from taxable income generated by Social Security or pension benefits.
Do you have enough cash each month to cover your debt and expenses, and maintain your lifestyle? Consider the following strategies:
Follow a budget. For responsible cash flow planning during retirement, you need to establish a budget. How much income are you bringing in, and what expenses must be covered? Budgeting can determine the amount of cash needed to live comfortably, as well as to help project long-term spending needs. Whether you track using an Excel spreadsheet or an online tool, be sure to evaluate your budget quarterly and make any necessary adjustments.
Plan for taxes. For most retirees, tax planning involves analyzing your investment vehicles and their tax consequences. For example, one type of account may have different timing or tax penalties for withdrawals than another. When funds are needed to sustain your monthly cash flow, it’s important to be mindful of the tax ramifications when choosing the account from which to draw those funds.
Invest wisely. If your income streams are producing more cash than you’re spending each month, think about investing to help make that money work in your favor. According to some experts, a down market can be a great time to invest — as long as you have time to watch the market recover so your funds may grow. As always, consult with a financial advisor on your specific situation.
Don’t touch your emergency fund. You never know when a situation may require immediate cash. So, when on a fixed income, you need to have that money readily available. You and your family should set aside an amount based on your comfort level and budget. This can help prevent scrambling for funds when you need them most.
Cash in on your home equity. Downsizing, refinancing or relocating can help generate cash flow, but a reverse mortgage from Reverse Mortgage Funding LLC (RMF) allows you to tap into the equity you’ve built without having to sell your home. You can choose to take the proceeds as a lump sum, monthly payments or a line of credit that’s available when you need it. Borrowers who elect a fixed rate loan will receive a single disbursement lump sum payment. Other payment options are available only for adjustable rate mortgages. In certain states, RMF’s Equite Elite loan provides a fixed-rate term payment option. The best part? Monthly mortgage payments are optional — that means you can keep more of your savings and invested assets. As with any mortgage, you must meet your loan obligations, keep current with property taxes, insurance, and maintenance. Call to learn more.
Because cash is king
If you’re looking for ways to maintain positive cash flow during retirement, consider your unique needs and explore the options available. While retirement changes cash flow, it also presents new financial opportunities to help sustain the lifestyle you deserve.
This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders.
Worried about carrying credit card debt when you retire? You’re hardly alone.
The good news? There are steps you can take now to get control of high-interest credit card debt and be in solid financial shape for retirement.
Lower your interest rates. Individuals age 75 and older have the highest average credit card debt — $8,100. Rising interest rates can make carrying a balance quickly add up. Consider switching to cards that offer 0% APR on balance transfers or no interest during an introductory period. This gives you more time to pay off a balance without accruing more interest.
Spend less than you make. From the latest tech trend to a lavish vacation, “immediate gratification”
Expenses can put a huge dent in your ability to save for retirement. The solution? Live below your means while you’re still working. This may free up some funds to pay down high-interest credit card debt.
For example, create a budget using a portion of your current income. If your household currently has two incomes, try basing your budget on just one and bank more of the second income.
Work longer. Continuing your employment for a few years more can benefit you twofold: You’ll help reduce the need for cash during retirement and delay cashing in on your Social Security benefits.
Waiting until you reach full retirement age makes it more likely that you can collect 100% of what you’ve built up. For example, if you start collecting at 62, and your full retirement age is 66, you may miss out on 25% of your maximum benefit every month for as long as you live — and that adds up to a significant amount. Collectively, this too could help free-up cash to alleviate the burden of high-interest credit card debt.
Look into a reverse mortgage loan. It’s no surprise that paying off credit card debt can be difficult for retirees living on less income. But the equity in your home can be an important asset and provide security during retirement — if you can access it.
With a reverse mortgage, older homeowners can convert a portion of their home equity into a useable resource, freeing up money to reduce higher-interest monthly bills, refinance an existing mortgage, make home renovations or cover medical care and/or in-home care.
Unlike a traditional mortgage, a reverse mortgage has a flexible repayment feature: It provides the option to make no monthly principal and interest payments, as long as at least one of the borrowers lives in the home as their primary residence and loan obligations are adhered to (including property taxes, insurance, and maintenance). Speak with an experienced reverse mortgage specialist from RMF at (888) 277-1567 to learn more.
“Financial planning research has shown that coordinated use of a reverse mortgage starting earlier in retirement outperforms waiting to open a reverse mortgage as a last resort option once all else has failed,” explains Dr. Wade D. Pfau, CFA, college professor and founder of the Retirement Researcher. “Reverse mortgages have transitioned from a last resort to a retirement income tool that can be incorporated as part of an overall efficient retirement income plan.”
Live the retirement of your dreams
For most people, retiring 100% debt-free is not a realistic goal. By leveraging assets such as your home equity, you can improve your cash flow and help ensure that a more comfortable retirement lifestyle is within your reach.
This content is sponsored by RMF, one of the nation’s leading reverse mortgage lenders.
I just so happen to have a reverse mortgage. The best thing I ever did in my life.
DIANE S.Benicia, CAYou get to stay in the house and that's a really good thing. Especially since you still own the house.³
JAMES J.Philadelphia, PAIt's a mortgage, or it's a line of credit, but with flexibility. I haven't heard yet any reason why I shouldn't pick this product.
RICK M.Fairport, NY
