Since January of 2020, the average home has dramatically increased in value! That's really an understatement, isn't it?
What does that increase mean to the average retiree? Not much!
That's because "equity" has no value, unless it is unlocked and
accessible. And this was traditionally done if you sold your home or took out a
loan and made monthly payments.
But how can you unlock your growing piggy bank and use it strengthen your retirement without moving or payments? You can use the newly restructured reverse mortgage!
Today, the average retiree can unlock around 30-40% of their homes
appreciated value and turn that into a growing reverse mortgage line of credit.
The chart above shows a 62-year-old couple in a $300,000 home. The
reverse mortgage line of credit begins at around $106,000, but it does not stay
there. Based on today's rates, it grows to nearly $500,000 after 20 years.
Whoa!
How long has it been doing this? Since 1988 when Congress
authorized the program under the auspices of the department of Housing.
How are you incorporating Housing Wealth into a retirement income plan?
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