For retirees looking to use their homes as income during retirement, they have one or two choices: either downsize or get a reverse mortgage, according to a new ebook from the Center for Retirement Research at Boston College.

2. For retirees looking to use their homes as income during retirement, they have
one or two choices: either downsize or get a reverse mortgage, according to a
new ebook from the Center for Retirement Research at Boston College.
The booklet, Using Your House for Income in Retirement, is filled with
infographics, definitions, examples and other useful tips for retirees who may be
looking to shore up their savings by drawing on home equity as an additional
source of funds during retirement.
www.ZReverseMortgage.com

3. WIth housing being one of the biggest single expenses for homeowners age 65
and older—consuming at least 30% of incomes for retired households—the
ebook suggests that downsizing or getting a reverse mortgage can help add to
an individual’s savings, cut expenses and free up income.
www.ZReverseMortgage.com
For example, downsizing from a $250,000 house to a
$150,000 property can increase a person’s yearly
income by $3,000 after calculating the difference in
prices, moving and selling costs and how they affect
yearly income.
Additionally, this downsizing scenario can also free up
$3,250 in yearly income when factoring the new
housing expenses (taxes, insurance, upkeep and
utility bills) associated with the less expensive home.

4. But for those who don’t want to task themselves
with relocating, that’s where a reverse
mortgage can be beneficial, the ebook notes,
detailing several key requirements to be eligible
for the loan along with critical Home Equity
Conversion Mortgage (HECM) guidelines.
The ebook also describes the various ways to
use a reverse mortgage, specifically, the
different payment options a borrower can
choose, including a line of credit, lump sum or
monthly payment feature.
www.ZReverseMortgage.com

5. For an individual age 65 who owns a $250,000 house, with a reverse
mortgage, that person will add about an estimated $8,600 to his/her income,
pay about 3.3% of the value of their house, and above all, remain able to live
in their current home, according to an example outlined in the ebook.
A reverse mortgage has long been described as a viable financial resource to
help aging homeowners age in place, however, it has also repeatedly been
described as a solution that is not “one-size-fits-all.”
For this reason, the Center for Retirement Research encourages prospective
borrowers to use online resources, including a reverse mortgage calculator
from the Department of Housing and Urban Development if they would like to
learn more about their options and the finer details of the home equity-tapping
loans.
www.ZReverseMortgage.com

6. “Your house has many uses. It’s your home. It’s wealth you can use as a reverse
or bequest. And it’s a potential source of income. How you use it depends on
what you need and value,” the ebook concludes.
www.ZReverseMortgage.com