A reverse mortgage is a unique way for seniors who are looking to generate additional cash flow – beyond their 401K and Social Security payments - to help fund their retirement. It helps relieve the anxiety that seniors may feel about outliving their money by allowing them to tap into the equity in what is likely their most valuable asset – their home.
With a reverse mortgage, monthly mortgage and interest payments are not required, and can be replaced by a lump sum payout, a monthly payout, a line of credit or some combination… all while retaining ownership. This additional, non-taxable cash flow can be used for home renovations, funding a grandchild’s education, or taking a long-delayed dream vacation.
What makes a reverse mortgage different from any other loan secured by a home is the way it is repaid. A reverse mortgage is repaid when the last borrower leaves the home, the home is sold, or it is refinanced. To qualify, the borrower must be 62 (55 in some instances), live in the home as a primary residence, keep up with loan obligations of maintaining the home, and pay their property taxes and insurance.
To find out more about how a reverse mortgage can help you achieve a more secure financial future, call us today.
Reverse Mortgages of Michigan