For many retirees, it can be difficult to try and come up with ways to get another source of income coming in. There may be many ways of accomplishing this goal such as getting a job or considering a reverse mortgage loan from a company such as American Advisors Group found at www.jobs.net/jobs/aag/en-us. When you think about the option of getting a reverse mortgage loan, it needs to be from a reputable company. Below are some of the top benefits of an AAG Reverse mortgage loan to be considered.
Access To Cash
Only in a perfect world would every retiree have put away enough money throughout their life to live their golden years easily in the way they were accustomed to while they were working. However, this does not pan out for everyone. Many retired individuals get to a point in their retirement where they need to find a way to generate extra income to survive. A reverse mortgage is a great way to leverage your assets for extra cash.
Gets Rid Of Mortgage Payment
Many people do not know that when you take out a reverse mortgage loan, you do not have to have a mortgage to do so. These types of loans do not require you to have monthly mortgage payments. These payments are repaid at the end of your loan instead. Borrowers are able to use the funds from the reverse mortgage loan to meet other needs. Some borrowers may use the money to pay off an existing mortgage or to pay off a home equity line of credit they have. Unlike the line of credit from your home equity, the reverse mortgage will usually be used to remove most retirees’ biggest monthly bill. For most, the mortgage is the biggest bill.
Extends Life Of Social Security Benefits
Many retirees end up tapping into their social security benefits early because they are in need of money to survive. However, if they were to apply for a reverse mortgage loan for funds instead, they can refrain from taking their retirement benefits earlier than they should. The longer you refrain from collecting your social security benefits, the more you will end up getting. Using a reverse mortgage loan can also help you to refrain from tapping into other retirement accounts too early such as a 401(k) plan. When you begin collecting from your 401(k), you will have to pay taxes. The loan can help save you from paying taxes each year you don’t collect from your retirement.
Unused Funds Can Increase In Value
These days, someone’s retirement may easily last many more years than they originally planned for. This can put a huge strain on cash flow. If you add unexpected medical expenses into the mix, you could end up losing all of your funds quickly. A reverse mortgage can give many borrowers peace of mind as well as help them to accumulate extra cash. If you take out a line of credit with a reverse mortgage loan and end up not using it, the unused amount of the line of credit will start to increase each year.
As can be seen, there are many benefits to taking out a reverse mortgage loan when you retire. If should be noted that taking out any type of loan should be carefully considered. With reverse mortgages, all applicants will go through a necessary counseling session before applying to ensure they completely understand the way the loan works.
