Senior homeowners are using the additional tax-free cash flow generated by a reverse mortgage in many creative ways to benefit themselves and their families. Homeowners are no longer required to make a principal and interest payment, allowing them to boost their cash flow… free of income tax. The monthly payment becomes optional, giving the borrower complete control.
Some borrowers use the additional available funds generated by their reverse mortgage to consolidate other existing debt, further improving their cash position. Borrowers can also create a “What If” fund, to cover unexpected expenses like a medical emergency or other unanticipated events. This additional cash flow can be used to help senior homeowners maintain and even improve their retirement lifestyle. It can provide an alternative to being placed into a retirement home or expensive care facility, preserving their dignity and independence. A reverse mortgage can also allow them to renovate their home to accommodate their changing physical needs, so they can more comfortably “age in place.”
To find out more about how a reverse mortgage can help meet your financial needs, call us today.
Reverse Mortgages of Michigan