Retiring or about to retire? It is time to realign to finances in a way they benefit you. The question arises if you have paid off your mortgage or not. If you haven't paid it off, which is quite likely due to rising home prices, you need a way to manage your finances efficiently. Here are some tips which will help you sail through your retirement happily and without any headaches.
Prioritize debt repayment
Middle-aged people are often left with very little liquid assets such as cash, because they tend to prioritize their investments or help their children with their financial requirements such as tuition fee or car insurance etc. Due to this the mortgage payment slows down. You need to instead sit and talk with a financial advisor to make debt repayment a priority so that you can lead a stress-free life.
Reverse mortgages
Those of, or above the age of 55 should know they can avail a reverse mortgage which enables you access to money using home equity. You can access more than half of the current value of your home using a reverse mortgage and that too in a tax-free manner. You don't have to sell the house by using this helpful instrument.
The lender who will extend a reverse mortgage to you will, however, consider a few things such as the location of your home, your age, the current price of the home, and the interest rates running currently. If you qualify for the reverse mortgage, you can get the amount via as a lump sum payment or as regular payments over a period of time or as a combination of the two i.e. a lump sum and regular payments. This reverse mortgage shall ensure access to cash for any expenses such as medical emergencies and the likes.
All-in-one
Some people have their investments, savings, as well as mortgages divided into many accounts. This makes it quite difficult to manage the expenses and to keep a tab on your finances. You must look at opening an All-in-One account. This concept is a game changer and is offered by a few companies. This account can be used to manage your savings, your mortgage, emergency expenses and basically most aspects of your financial health. As a bonus, you also cut down your baking fee with various banks and can focus on paying your mortgage faster.
Downsizing
If you have been lucky enough to have a large home which can accommodate a lot of your needs such as a pool, yards, etc., it is a good plan to think of moving to a smaller home as you retire. With kids gone to live lives of their own, and you being an empty nester, all of that space will get more and more tough to maintain. Moving to a smaller house also means you will be able to pay off your debt quickly. So do give it a thought!
If you'd like to discuss paying off your mortgage faster and need help, do not hesitate to contact LendX Financial.
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