As the name suggests, a reverse mortgage is the complete opposite of mortgage where you keep your property as security for a loan. Reverse mortgages are steadily gaining in popularity as a retirement planning resource for the many benefits it offers as compared to the other conventional retirement resources.
Taking out a reverse mortgage is especially beneficial in the following scenarios:
- When Your Spouse is Younger
If you have a younger spouse, then you can choose to reverse mortgage your house as it can significantly affect the amount of final payment of your loans. Research data suggest that it is certainly a great option for most senior citizens, as in reverse mortgage the loan payout distributions are calculated as per the age of the youngest spouse, as it is presumed that the younger spouse will live longer.