Senior homeowners are finding that a reverse mortgage can be a cost-effective way of addressing some of their biggest financial concerns. For example, a reverse mortgage improves cash flow in retirement - free of income tax – allowing homeowners to pay off their existing mortgage by eliminating their monthly Principal & Interest payments.
Homeowners can also use a reverse mortgage to consolidate their debt… and further improve their cash flow. A more creative use of a reverse mortgage, is to help create a “safety net” fund, should an unexpected expense or a medical emergency arise. This fund can be used to pay for in-home care and to help a homeowner avoid being forced to go to a retirement or care facility. A reverse mortgage can also be used to help a homeowner update or remodel their home to make it easier for them to “age in place”.
Some homeowners have even used a reverse mortgage to provide funding for education expenses or a new home as a living financial legacy for their kids or grandkids.