Now that you're reaching retirement age, you might be taking a long, hard look at your nest egg. If you're like a lot of American's, you're probably realizing that your nest egg isn't as developed as you'd like it to be. You might not even have a nest egg. If that's the case, it might seem like retirement is going to be a bleak prospect. Even if you have a good nest egg, there's always room for improvement. If you own your own home, an improved retirement is right at your fingertips; in the form of a reverse mortgage. Not sure what a reverse mortgage is? It's where you trade the equity you have in your home for a line of credit that involves cash payments. If you'd prefer, you can take a cash payout, instead of the smaller monthly disbursements. A reverse mortgage allows you to utilize your equity without relinquishing your home. Here are some of the reasons you should consider a reverse mortgage.
Use Money for a Second Home
If you've always liked the idea of having a second home that you can use when you retire, a reverse mortgage will help that dream come true. Once you have your reverse mortgage, you can use the proceeds to purchase your second home. You can increase your income by renting out the unoccupied home. The benefit of this option is that you'll have two homes, no house payments, and a second source of income in the form of rental property.
Improve Your Retirement
Even if you have a substantial retirement account, it's always nice to have a little more cushion. Your reverse mortgage will provide you with that cushion. You can use the money you receive from your reverse mortgage to travel and see the world after you retire, or just relax and enjoy the extra money you have at your disposal.
Finance a Home-Based Business
If you've wanted to open a home-based business, but haven't been able to get approved for a small business loan, a reverse mortgage will give you the funding you need to get started. Once you take out your reverse mortgage, you can use the funds you receive to invest in yourself, and start your own business.
Security for the Unexpected
You never know when something is going to happen that will knock you off your financial footing. Whether it's an unexpected illness, or an investment portfolio that falls flat, when the unexpected happens, you're going to need a way out. That's where the reverse mortgage comes in handy. With the reverse mortgage, you'll be able to avoid the financial devastation that could have occurred.
Don't let your equity just sit there. Use a reverse mortgage to put it to work for you. Talk to a real estate agent near you to discuss your options.