An Income Source for Seniors 62 and Over

More and more senior citizens are using a reverse mortgage to provide extra income during their retirement. Especially in tighter economic times, a reverse mortgage is an excellent way to turn your property into cash flow.

Many senior citizens already own their home and property. A reverse mortgage takes the value of your home and makes it available in either one large sum or a series of smaller payments. For someone who has spent their working years building home equity, this can be a large financial gain. This works best for seniors because there is no traditional obligation to repay the mortgage, such as monthly payments. Instead, the loan is repaid when the owner is done with the house, typically either due to death or moving into a retirement home. At this point, the home is put up for sale and the proceeds pay off the loan that provided the reverse mortgage.

It is still the homeowner’s responsibility to maintain the home and keep up on taxes and insurance, but as these are expenses that are already being paid, the reverse mortgage is a relatively risk-free way to increase your income. Even better, if the value of your home naturally increases for any reason, you can often obtain additional reverse mortgages, providing even more money to fund your retirement.