Those we reach the federal retirement age of 66 but delay receiving social security benefits could see a big pay off over the long run. Waiting an additional four years and applying for benefits at age 70 could yield as much as an extra $1,100 per month.
However, according to a study conducted by Reuters, more individuals are cashing out at least one of their retirement accounts to supplement income prior to retirement because they simply cannot afford to wait.
However, Professor of Finance Emeritus at the University of Pennsylvania, Jack Guttentag, there are ways that reverse mortgages can help seniors when nearing retirement.
Reverse mortgages can eliminate monthly mortgage payments, leaving more money in the pockets of seniors as well as provide supplemental income for borrowers affording them the ability to postpone the need for social security benefits. Homeowners will also find that this powerful financial tool will supplement retirement income in the form of a monthly payment, lump sum payout or a line of credit.
Meanwhile, conventional conforming no-point 30-year fixed mortgage rates average 3.5 percent while the 15-year rate is near 2.75 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.