Untapped money in the line of credit earns interest. Among her expenses: $50,000 on emergency dental work and a down payment to reserve a spot in a retirement community set to open in 2025. Fox began pulling money from her reverse mortgage. Within a year, her cash reserve was depleted, and Ms. Fox chose a line of credit, which she could tap as needed. Reverse mortgage borrowers can take the money as a lump sum, as fixed monthly payments or as a line of credit. If something unexpected did happen, “it could be when the stock market is down and it could be an inopportune time to sell assets,” she said. Fox, 75, had set aside $150,000 in a cash reserve, and the reverse mortgage was another backup. For added protection, she took out a reverse mortgage on her new home. She waited two years to retire as a financial planner and three to sell their house and buy a lakeside townhome in Reston, Va. After her husband died suddenly from a fall in 2016, Marjorie Fox decided to hold off on any big decisions.
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