Benefits of the Reverse MortgageEliminate your monthly mortgage payment for the rest of your life. (You will still have to pay the property taxes, home owner’s insurance and condominium fee.) Most senior homeowner are living month to month due to higher living expenses, so eliminating the monthly mortgage payment should help out quite a bit in the majority households. Receive, tax free monthly income for a set amount of time (5 years, 20 years), or the rest of your life. An extra monthly income will supplement your pension or social security income. This could provide additional financial freedom so you can better enjoy the retirement years. Receive a lump sum of tax free monies. You can use the monies however you want.
- Fix up your home. Bathrooms, kitchen, roof, porch, etc…
- Pay off credit card bills and other debts, medical bills. Get rid of these monthly bills that are draining you financially every month.
- Help finance your grandchildren through college, private high school.
- Vacation $$. Have some fun and laugh with your spouse and family.
- Buy a second / vacation home.
- Estate planning. Protection of assets. Pay for life insurance, long term care, etc. (consult a / your financial planner about this..)