There are lots of misconceptions about reverse mortgages, particularly among senior homeowners.
A reverse mortgage can help senior homeowners who are equity rich – but need the liquidity of additional cash flow – to help fund their retirement.
A reverse mortgage operates much like any other loan secured by a home… except that it transfers responsibility for repayment from the borrower to the home at sale or refinancing.
It allows a senior homeowner to eliminate their mandatory, monthly Principal and Interest mortgage payments, while unlocking access to the equity in their home, free of income taxes.
By using a reverse mortgage, a senior homeowner can remain in their home, retaining their title as owner and still maintain their independence.
This additional non-taxable cash flow can also help senior homeowners decrease the odds of outliving their money in retirement and reduce the anxiety about their financial future.
To learn how a reverse mortgage might be structured to suit your needs, call us today.