The Colorado Reverse Mortgage can be one of the most powerful retirement planning tools available to retirees. Not only will you no longer have a mortgage payment for the rest of your life with a reverse mortgage, but studies show that retirees with a CO Reverse Mortgage on average end up with a higher net worth upon their death.

There have been extensive studies on the effect of today’s reverse mortgage on the financial well-being of retirees. In fact, in one study by Barry and Stephen Sacks shows that while 45% of retirees without a reverse mortgage outlive their money in retirement, only 15% who have a reverse home loan outlive their money.
What would you do if you outlived your retirement nest egg in your 80’s or 90’s? Used as a financial planning tool, the CO Reverse Mortgage is no longer only an option of last resort, it is a financial strategy to help preserve your assets and assure that you feel financially secure in your retirement.
The reverse mortgage can be used either to refinance your current traditional loan, or can be used to purchase a home through the HECM for purchase reverse home loan. To qualify, you only need to show that you have the ability to pay the taxes and homeowner’s insurance, and must have enough equity in your home. The amount of equity that is required is based on your age, with older borrowers able to borrow a higher percentage.

Here are a few of the many benefits of utilizing a CO reverse mortgage as part of your overall retirement plan:

- No mortgage payment for the rest of your life. Stop pulling taxable income from your investments, potentially in a down market, to pay a traditional mortgage payment.
- Postpone taking social security in your 60’s to maximize your benefits.
- Never will you or your spouse be forced to move out of your home as long as you are living and pay the taxes and homeowner’s insurance, even if one of you is not on the reverse mortgage loan.
- You aren’t “giving the house to the bank.” The home is still yours, and your heirs will get the home and any equity upon your death.
- If you end up owing more on the home than the value upon your death, your heirs are not on the hook. The reverse mortgage insurance will cover the difference!
- Take a mortgage interest tax deduction only when you want.

You may also want to check out the US Department of Housing and Urban Development’s “Frequently Asked Questions about HUD’s Reverse Mortgages.”

Give RJ Baxter a call in the office to get your questions about the Colorado Reverse Mortgage answered or visit our website at www.reversemortgageloanscolorado.com . We can also send additional literature such as the studies referenced above.
RJ will give you honest answers to your questions, and doesn’t believe in high-pressure sales. You should have all of the facts and feel comfortable with this powerful and unique home loan product before making any decisions. You can reach RJ Baxter at 303-670-0137 or teambaxterco@gmail.com.

RJ Baxter, NMLS #395819, Fairway Independent Mortgage Corporation NMLS #2269